Momentum Stocks
Stocks with prices that are moving quickly higher in a market - usually ahead of earnings growth. Momentum investors are particularly keen on the so-called 'positive earnings surprise', when a company outdoes brokers' earnings estimates. They view a 'negative earnings surprise' - lower-than-expected earnings - as a sell signal. They use a variety of computerized formulas to make buy and sell decisions, but all come down to "Buy on strength and sell on weakness." So they tend to pile into the same stocks all at once, and the gains that follow are something of a self-fulfilling prophecy.
Every Wednesday, we publish our “Investor Toolkit” series on TSI Network. Whether you’re a new or experienced investor, these weekly updates are designed to give you specific investment advice. Each Investor Toolkit update gives you a fundamental piece of investing strategy, and shows you how you can put it into practice right away.
Today’s tip: “There are 2 fundamental things …read more »
Growth stocks are companies whose earnings growth has been above the market average, and is likely to remain above average. These firms often pay little or no dividends. Instead, they invest their free cash flow in furthering their growth.
These stocks can be highly volatile, but they often make good long-term investments. They can be well-known stars or quiet gems, but …read more »
Growth stocks are companies that are expected to have earnings growth above the market average. Frequently, growth stocks pay little or no dividends, instead re-investing any extra money to promote further growth.
These are not to be confused with momentum stocks. Momentum stocks are stocks that are moving higher in the market. While individual definitions may differ, the overall goal from …read more »
Topic: Growth Stocks
Keywords: Growth Stocks
Growth stocks are companies that are likely to have earnings growth above the market average. Frequently, growth stocks pay little or no dividends. Instead they typically re-invest any extra cash flow to promote further growth.
Hold a mix of growth and value stocks
If you take account of your own financial and personal circumstances and temperament, and …read more »
