Wednesday, February 12, 2014

Best growth stocks

 Growth stock are something all investors should be looking for. Earnings growth is the heart of a great stock. When the earnings are going up the price of the stock will move accordingly. If the earnings are going down then the price of the stock will fall. Traders know that they can short a stock if it is falling. Stock brokers will have stock screeners that can be set up to screen growth stocks.
 There are no set guides to what a trader can look for but a company that is having a twenty percent growth a year is outstanding. Another definition of a growth stock is that investors want to see earning increase each quarter. Traders want to see consistent earnings growth over each quarter. Remember not ever quarter is going to show some growth. Growth stocks at the end of the year will show a ever increasing growth of income.
 Many investors that invest in growth stocks will use a price earning multiple. They might compare two companies that produce the same product and compare which company is growing more. If the two companies show about the same P&E then they might not be the ones to buy stock in. Many growth stocks like Wall-mart, Coke-Cola are great examples of growth stocks. Many stocks have proven there worth and have made money for there investors. The best way is to compare companies using a stock screener is set the screener for five to ten percent returns each quarter.
High growth stocks