Growth Stocks

Why invest in Growth Stocks? Growth Stocks

Growth stocks are shares in a company whose earnings are growing faster than the overall market. They are expected to increase the value of your portfolio. They do not typically pay dividends; rather, the company invests excess cash back into the business to increase (‘grow’) the value of the company.

If you want to grow your wealth (as opposed to taking income from your investments), and have a few minutes each day to manage your portfolio, growth stocks are for you.

Good growth stocks will have these characteristics: 

  • Revenues and earnings are growing at a rate of at least 10%, compared to the same period a year ago.
  • There is great potential for future growth.
  • Profit margins and cash flow are healthy.
  • Not yet a ‘darling’ of the investment community, a growth stock will have a growing institutional following, which provides some stability and predictability to the stock’s price action.
  • The stock price is going up. 

Some of the growth stocks that Cabot subscribers have profited from include Home Depot, Cisco Systems, Apple, Amazon.com, eBay, Crocs, Monster Beverage, Las Vegas Sands, First Solar, Chipotle Mexican Grill and many more familiar names.

Cabot Market Letter, Cabot’s flagship newsletter, has fine-tuned its growth investing strategy since 1970. Cabot China & Emerging Markets Report applies this strategy to the fastest-growing markets on earth.

Best Growth Stocks- CabotTo get more information on high-potential growth stocks, read our free special report,"The Best Growth Stocks." Get it today!

The Best Growth Stocks

 

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Articles on the best time to buy, winning growth stock strategies, stocks for retirement, basic rules, mistakes to avoid and more...


  Read about Growth Stocks in the Cabot Wealth Advisory Archives:
Tesla Motors—Is It Too Late to Buy?
Tesla Motors (TSLA) has been one of the hottest stocks in the market, zooming to a gain of 206% over the past 10 weeks. Year-to-date, it’s up even more. So is it too late to buy?
4 Stock-Picking Tips You Can Use to Find Big Winners
It’s easy to simply recommend specific stocks. But doing that is like giving you a fish, when we really want to teach you to fish. Today I will give you stock-picking tips and focus on some “tricks” I use to find big stocks.
Growth vs Value Investing
Every investment portfolio ought to have some of both value and growth in it. Value is a great foundation for a diversified portfolio. But if you stick strictly to value, you’re leaving lots of growth gains on the table.
Tesla Motors Long Term Future
I can’t resist noting that today Tesla jumped 21% at the market open, thanks to news that sales had exceeded expectations and that the company turned a profit in the first quarter of this year.
The Luck Factor in Growth Investing
I think we sometimes don’t give enough credit to one factor that has an enormous influence on growth stock investing results, especially in the short-term. Luck.
3 Strong Momentum Stocks for 2013
The market is doing well, and sentiment is lousy: that's the perfect environment for market gains. To take advantage, you'll want to be in the market's strongest momentum stocks.
How to Know When a Bull Market Starts
When an athlete winds up on the cover of Sports Illustrated, lots of fans assume that a loss is on the way. There is an equivalent phenomenon in investing, and that’s when The Bull gets featured on the cover of Time Magazine.
Has Apple Stock Peaked?
There’s a chance that investor perception of the company is so high that all the big investors already own as much Apple as they can carry. It means there’s more potential selling pressure on Apple’s stock than buying pressure.