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Growth Stocks

Growth stocks are the glamour investments on Wall Street.

With the dominant performance of mega-cap tech stocks, growth stocks are also the best-performing stocks in the market today, having dramatically outpaced value stocks for the last decade. Growth stocks aren’t all tech companies, they run the gamut from up-and-coming consumer brands or fast-expanding restaurants to the cutting edge of biotech and technology.

We highlight some of our favorite growth stocks in our FREE REPORT on the 5 Best Stocks to Buy every month.

Of course, there’s a caveat to investing in these stocks. Unlike time-tested dividend stocks or bargain-basement value plays, these stocks carry plenty of risk. The companies are less mature, have smaller margins, and typically don’t pay a dividend. Thus, the stocks can be very volatile, especially around earnings season.

For many investors, however, the risks of investing in these stocks are worth the potential rewards. Apple (AAPL), Amazon (AMZN), Netflix (NFLX)—all of them started off as growth stocks before they became some of the best-performing and most coveted stocks on the market. Those who got in early earned triple-digit, even quadruple-digit, returns.

There are several keys to finding the right growth stocks:

  • Invest in fast-growing companies. It’s a rather obvious prerequisite. But it’s important to know what fast-growing means. It means investing in fast-growing industries, where revolutionary ideas and services are being created. Any little-known stock that provides a product that is essential to that budding industry makes for a good growth stock.
  • Buy stocks that are outperforming the market. Companies can promise all kinds of financial growth. But is that growth potential translating to a rising share price? The best investing tips come from the performance of the stocks themselves.
  • Use only the best market timing indicators. Never underestimate the power of the market to move stocks. You don’t want to invest in a growth stock just as the market is plummeting. If you’re in a bull market, you can afford to be aggressive in buying stocks that are more speculative.
  • Be patient. Not every growth stock will make you rich overnight. Very few will, in fact. Even Apple took years before it morphed into the biggest technology behemoth in the world. In the investment world, time is your friend. If you get out of a stock too early, you may miss out on some big gains months down the road.

Growth stocks were the basis upon which Cabot Wealth Network was founded in 1970. Our founder, Carlton Lutts, gave up a career in engineering to pursue his passion for stock selection and market timing.

More than half a century later, we’re much more than a growth investing advisory. But growth stocks—and helping individual investors earn big profits from them—are still at the heart of what we do via our flagship advisory, Cabot Growth Investor.

Investing in these stocks can be tricky. Finding a hidden gem that has yet to be fully discovered by the market is simultaneously exciting and frustrating. Look for up-trending earnings growth, improving profit margins, and booming industries. If done right, investing in growth stocks can be both highly satisfying and highly profitable.

And we’re here to help!

Growth Stocks Post Archives
These growth investing rules have been carefully selected as the most important guidelines a growth investor can use.
STMicroelectronics (STM) was a quick double for Cabot Momentum Trader earlier this year; here’s how we played it, step by step.
Is the stock market ready for a breakout? Cabot’s Mike Cintolo shares his stock market outlook, top AI investing trends and growth stocks to watch.
The bull market has continued this year, despite some volatility, and the best-performing large-cap stocks have all more than doubled. Here are their names.
They are two of the most recognizable names out there, and good stocks, but which is the better buy? Let’s break down Apple vs. Amazon stock.
These three AI infrastructure stocks are showing resilience and beginning to perk up. That could present a buying opportunity—and a sign that “risk-on” is back.
A stock hitting all-time highs while the market meanders is a potential sign of strength, which makes these large-cap stocks worthy of a closer look.
Recommending good growth stocks is our specialty. But we want you to be able to find them on your own. Here are nine items to look for.
Finding the leading growth stocks - the stocks that will lead the next rally - can be difficult. Here are four tips to help you get started.
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SpaceX just reported its first quarter of earnings since coming public, and it should serve as a warning to the investors paying stratospheric prices for shares.
Psychedelics stocks have moved much higher this year on the back of two powerful tailwinds. Here’s what you need to know about the novel therapies and how to profit from them.
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Hot new stocks are seemingly a dime a dozen, so if you’re investing in early opportunities, it’s more important to focus on the “opportunities” side of the equation.