A growth stock is, by definition, a stock that outpaces the market. Some of the best ones could earn triple-digit returns in a short amount of time. Of course, fast growth like that goes hand-in-hand with volatility and risk.
However, finding the right early-stage growth stock can help investors achieve their long-term investing goals. Here’s what to look for:
It may take a little work on your part to dig into the details, but it could be well worth it. And don’t expect that every growth stock will come without risk. Even so, for many investors, the risks are worth the potential rewards.
Apple (AAPL), Amazon.com (AMZN), Netflix (NFLX)—all of them started off as growth stocks before they became some of the market’s most coveted stocks. Those who got in early earned triple-digit, even quadruple-digit, returns.
Bear in mind, too, that no one picks winners all the time. Sometimes your stocks will go down right after you buy them. If they do, get out of them, keeping your losses small. On the other hand, you should hold your winners as long as they are doing well, cultivating them with the hope of holding on for the huge profits that can develop over several years time.
In general, we feel we’ve done a good job if 60% of our stock picks end up as winners. The key to success is letting the profits in your winners get larger while keeping your losses small.
To learn more and discover how you can find the right stocks for your portfolio, download our free report, Technical Analysis of Stocks: How Relative Performance Works, Why Trading Volume is Important, and Other Chart-Reading Lessons, right now.
After yesterday’s bloodbath in growth stocks, today feels pretty good. We may be able to thank a downright terrible April jobs number this morning (266,000 added versus expectation of 1 million), which may have temporarily quelled concerns over rising rates.
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In this week's video, Mike Cintolo discusses the growth stock destruction this week.
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The past three or four weeks, growth stocks, which have been in a correction since mid-February, finally worked themselves into position to get going if the buyers really stepped in. But they never did—of the few breakouts that tried to lift off, most vigor...
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Back in the Soup
During the past month, the way we thought about what was going on was that growth stocks had finally put themselves into a position to get going after a two and a half month stretch of tough, choppy trading. Instead narrow,...
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This week feels a lot like March. In other words, it’s pretty awful for growth stocks both big and small. The positive momentum from April has seemingly evaporated. There’s no sugar coating it – we’re taking a hit this week. The chatter around rates...
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It’s been a brutal week for growth stocks, and that’s continuing today. As of 11 am, it’s another horrible day for growth stocks—the Dow is up 50 points, but the Nasdaq is down 80 points and the average stock we own or are is...
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Cloudflare (NET) earnings are out today as sector rotation and scrutiny of SPAC-acquired target company valuations continue. Electric vehicle (EVs) stocks are struggling a bit and could be presenting us with attractive entry points.
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The Big Idea
It should come as no surprise that streaming is a huge trend.
Netflix, Amazon, Hulu and Disney+ have enjoyed massive success, so much so that everybody else has realized they need a streaming presence and are entering the market too. We see Peacock,...
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Things are still great. The market indexes are either making new all-time highs or within a whisker of them. The uptrend continues ahead of what is sure to be a booming economy in the months ahead.
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The big news in the marijuana industry this week is that the Tilray/Aphria merger is complete, turning these two Canadian firms into the biggest marijuana company in the world—for now.
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Cardlytics (CDLX) reported last night that Q1 revenue grew by 17% to $53.2 million (beating by $2 million) and that adjusted EPS came in at -$0.34, a drop from -$0.26 in the year ago quarter (and $0.03 shy of expectations). Overall, the quarter showed improvement...
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May hasn’t started out exuberantly, with an early pull-back in the high-momentum tech stocks dragging down the broader indexes.
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It’s earnings season. And it’s a weird one.
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The market has been a little iffy over the last five or so sessions. This action, coming on the back of great earnings from mega cap tech stocks last week, but not great reactions, suggests a more conservative stance is appropriate right now some...
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The market has been a little iffy over the last five or so sessions. This action, coming on the back of great earnings from mega cap tech stocks last week, but not great reactions, suggests a more conservative stance is appropriate right now some...
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There’s still a chance earnings season could save the day, but so far, most reports have led to selling and after seeing many growth stocks set up in recent weeks, the bears are beginning to come out of the woodwork again.
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While some sectors of the market look tired (growth), other sectors and stocks (retail, materials, financials, energy) continue to make new highs and/or come alive. Fortunately, the Cabot Profit Booster portfolio has avoided the hyper-growth stocks that are under pressure, and is positioned in stocks are...
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During any market drop, you might ask, "Should I sell my stocks?" Here are a few guidelines on when to sell stocks and when to hold them.
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With the S&P 500 and Nasdaq Composite hitting new highs just last week, there’s no question that we remain in a bull market, and thus there’s no question that we should remain heavily invested.
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Stock Recommendation Tracker
The Stock Recommendation Tracker is a table that features all of the current recommendations in all of our portfolios. It’s a quick way for you to see what stocks are currently in our portfolios and will highlight new additions or any to...
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