Learning about and tracking growth stocks in unique industry groups is an ongoing process that can help traders and investors outperform the broader market. This article will provide links to some of the resources from the On Trend episode focusing on growth stocks (Finding, Tracking and Analyzing Growth Stocks). A recording of this episode is available on Youtube. Chartists interested in growth stocks should consider checking these resources on a regular basis, monthly or quarterly.
Once these stocks are in ChartLists, chartists can then apply their preferred analytical tools to find trading or investing opportunities. Because growth stocks have higher betas and higher risk characteristics, chartists should also think about portfolio construction and position sizing. Portfolios with high growth stocks will likely outperform during a broad market uptrend, but also suffer bigger setbacks during downturns.
Programming Note: This article and the accompanying On Trend episode were prepared ahead of time. I am on vacation until April 19th.
Growth Oriented ETFs
Here are some fund families with unique ETFs featuring growth stocks or sub-industries that have secular growth prospects.
Here are some symbols from a few sub-industries with secular growth prospects:
Cannabis: CRON,HEXO,TLRY,ACB,CGP,GWPH,APHA Electronic Payments: V,MA,SQ,PYPL,WP,GPN Software as a Service: CRM,NOW,ZEN,WDAY,PAYC,ULTI,CSOD,COUP Communications as a Service: TWLO,FIVN,RNG,EGHT,VG Cybersecurity: OKTA,CYBR,PANW,CHKP,QLYS,FTNT,PFPF
Scanning for Growth Stocks
Growth stocks are usually the stocks with the highest Rate-of-Change. This scan simply finds stocks with a 125-day Rate-of-Change greater than 20%. Note that I am scanning for the 125-day ROC twenty days ago. This offset will also capture stocks that pulled back from their peal Rate-of-Change over the last few weeks. This scan is just a starting point to find stocks with strong upside momentum and these are usually the companies that are growing the fastest.
[country is US]
and [[exchange is NYSE] or [exchange is NASD]]
and [SMA(20,Close) > 10] and [SMA(20,Volume) > 300,000]
and [20 days ago ROC(125) > 20]
Rank by ROC(125)
On Trend on Youtube
Finding, Tracking and Analyzing Growth Stocks
Arthur Hill, CMT Senior Technical Analyst, StockCharts.com Author, Define the Trend and Trade the Trend
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