How to Find the Best Growth Stocks
The complete guide to investing in Canadian growth stocks and profiting from a long-term growth strategy through investments in Restaurant Brands, Alimentation Couche-Tard, CGI and More
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The heart of every profitable portfolio—your guide to finding the best growth stocks
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Dear Canadian investor,
Investors are always looking to profit from the market and Canadian growth stocks are companies that have above-average growth prospects. They are firms whose earnings have increased at a faster rate than the market average and their growth is likely to remain above average for years or decades. It is often the case that they pay small dividends or none at all. Instead, they re-invest their cash flow in the business, to promote their growth.
Although these stocks can be highly volatile, they often make good long-term investments. They may be well-known stars or quiet gems, but they do share one common attribute—they have grown at higher-than-average rates within their industries, or within the market as a whole, for years or decades.
Growth investing focuses on trying to identify and buy rising stocks when they have further growth ahead.
But how can you identify these types of promising Canadian growth stocks? That’s what you’ll learn in this special report, and we’re giving it away for FREE. You’ll discover…
- …the different types of growth investments, which come with higher risks and which ones to avoid altogether.
- …how to identify hidden value in growth tech stocks.
- …a deeper understanding of Canadian growth stocks and how their market indicators differ from value stocks
- …when to sell Canadian growth stocks, and when to hold.
- …how to minimize your exposure to risk when investing in aggressive growth or speculative stocks.
And of course, we’ll reveal our top five Canadian growth stocks.
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In this report you’ll learn how to look for growth stock companies that are likely to continue growing in a rising market but that won’t hurt you too much during those inevitable periods when business or the markets are bad.
Discover these 5 important questions about growth stocks:
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What is a stock death spiral?
A stock death spiral occurs when a company’s stock price continuously declines, triggering convertible security conversions that further dilute existing shares and drive the price even lower.
You need to recognize that the odds are against you when you invest in companies that are not yet making money. Some if not many of these companies will never make any money. Discover when it’s best to sell disappointing speculative stocks.
How can I assess a company’s competitive advantages and market position?
Assess a company’s competitive advantages by analyzing its unique selling propositions, market share, brand strength, economies of scale, and barriers to entry in its industry.
We sometimes differ with the mainstream view on which stocks make the best growth stock investments. Not all growth stocks are created equal. This is particularly true for growth drug stocks. Discover how we spot a well established tech and drug stocks and how you can minimize your risk.
What financial metrics and ratios should I look for when evaluating growth stocks?
Key metrics for evaluating growth stocks include revenue growth rate, earnings per share growth, price-to-earnings ratio, price-to-sales ratio, and return on equity.
- Because aggressive stocks expose you to a greater risk of loss, we recommend limiting your aggressive holdings to no more than about 30% of your overall portfolio. That number can vary. Ultimately, the percentage of your portfolio that you should hold in either conservative or aggressive investments depends on your personal circumstances and risk tolerance. An investor with a longer time horizon or without the need for current income from a portfolio can invest more money in aggressive stocks. Discover the characteristics of speculative growth stocks.
What is a momentum stock?
- A momentum stock is one that exhibits a strong upward or downward price trend, attracting investors who believe the trend will continue.
- It’s very easy to confuse growth stocks with momentum stocks. Like growth stocks, momentum stocks often move up faster than the market average. But momentum stocks attract a different kind of investor. Growth-stock investors are in for the long haul, while momentum investors aim to profit from short-term trades. Momentum investors are particularly keen to jump in on a so-called “positive earnings surprise.” That’s when a company outdoes brokers’ earnings estimates. Discover why knowing the difference between momentum and growth stocks can save thousands of dollars in potential losses.
What is a growth by acquisition strategy?
A growth by acquisition strategy involves expanding a company’s size, market share, or capabilities by purchasing other businesses rather than through organic growth.
Investors often underestimate the hidden risks of a company that acquires growth by acquisition. These acquisitions generally come on the market when it’s a good time to sell. That may not be, and often isn’t, a good time to buy. Insiders and managers at the selling company know a lot more than the buyers about the company itself, and its business strengths and weaknesses. Learn all the important warning signs for companies that use a growth by acquisition strategy.
And there’s a great deal more to learn before you start investing…including a selection of Canadian growth stocks we recommend buying.
Claim your FREE digital copy of How to Find the Best Growth Stocks now.
Our comprehensive report tells you which Canadian growth stocks will be the greatest assets to your growth investing portfolio
Evaluating a growth stock is similar to evaluating a value stock. But each has its own considerations. When we consider a specific growth stock, we start by putting all the important information we know about the company into perspective. That new invention may get attention, but how does it compare to what the competition is doing? The new project sounds impressive, but how much impact will it really have on the company’s profit? The debt sounds high — will the company be able to keep up its agreed-upon interest and principal repayments?
How to Find the Best Growth Stocks, developed by TSI’s expert team of analysts, gives you everything you need to know about investing in Canadian growth stocks in these ten chapters:
- What are Growth Stocks
- Types of Growth Investments
- How to Identify Hidden Value in Growth Technology Stocks
- Three Big Risks to Investing in “Hot” Growth Stocks
- Minimize Risk in Aggressive Growth or Speculative Stocks
- Four Speculative Stock Investing Tips
- The Difference Between Growth Stocks and Momentum Stocks
- Profit From the Difference Between Growth and Momentum Stocks
- Take a Broad View When Looking for Growth Stock Picks
- What Does Growth by Acquisition Mean, and What are the Risks?
- When You Invest in Growth Stocks, Don’t Give Up on a Rising Stock too Soon
- Five Of Your Favourite Growth Stocks
- Conclusion
4 more questions about growth stocks:
How do I build and manage a portfolio that focuses on growth stocks?
To build and manage a growth stock portfolio, focus on identifying companies with high earnings growth potential, strong competitive advantages, and scalable business models in expanding markets.
What are the common mistakes to avoid when investing in growth stocks?
Common mistakes in growth stock investing include chasing past performance, ignoring valuation, overlooking company fundamentals, and failing to diversify across sectors and market caps.
How can I manage the volatility that often comes with growth stocks?
When is the right time to buy or sell a growth stock?
The ideal time to buy growth stocks is during market dips or when a company shows strong potential but is temporarily undervalued, while selling is appropriate when growth prospects diminish or valuations become excessively high.
In How to Find the Best Growth Stocks, you’ll learn how to profit from growth stocks that have solid financial indicators, how to spot them, and how to identify growth stocks that are over hyped by brokers and the financial news media. You’ll see why in our report.
- You will learn why holding value stocks can balance out the volatility of your growth portfolio.
- You will learn how to spot growth stocks in their initial phases of growth which you can profit from in the long term.
- You will learn the #1 reason why investors fail to profit from growth stocks.
We’ll even tell you about our top four growth stock picks
You may be surprised by our #1 Canadian growth stock buy and how it aims to double in size over the next five to seven years. At TSI Network, we feel that company spin-offs are as close to a sure thing when it comes to profiting from the stock market, and our top aggressive buy for 2016 is a conglomerate that has major spin-off potential.
In this report, you’ll also discover two other growth stock picks that we think have earned a spot in your portfolio.
Claim your FREE digital copy of How to Find the Best Growth Stocks now.
When you download How to Find the Best Growth Stocks for FREE, you get clear, easy-to-follow advice on how to profit from Canadian growth stocks—and more.
You discover that you don’t need to be a professional day trader to pick quality growth stocks, you just need Pat’s investment philosophy that helps protect your money and guides you on picking the best possible Canadian growth stocks to invest in.
In addition to this free report, you also have the opportunity to get free delivery of our TSI Wealth Daily newsletter. You will receive daily stock reports with our recommendations, investment tips and answers to investment questions.
We invite you to download this exceptional free report right away. We are sure you will enjoy it and profit from it.
About Pat McKeough
With four decades of experience as an investment advisor, Pat McKeough is the editor and publisher of four newsletters: The Successful Investor, his flagship advisory on Canadian stocks, the Canadian Wealth Advisor for safety-conscious investing, Power Growth Investor for investors seeking stocks that can double, triple or even quadruple in value, and Wall Street Stock Forecaster for the best U.S. stocks for Canadian investors. He also has an exclusive service for investors seeking greater personal attention and interactive advice with their investments, Pat McKeough’s Inner Circle.
Pat is also the founder and president of Successful Investor Wealth Management, which provides personal portfolio management to a group of private investors.
Claim your FREE digital copy of How to Find the Best Growth Stocks now.
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