Finding the best growth stocks to buy starts with knowing what winning stocks look like before they make a big run. To understand what to look for, use a checklist highlighting the seven traits of top growth stocks, and check IBD screens to see which stocks are showing those same traits right now.
By focusing on these so-called CAN SLIM traits that the top-performing stocks typically display in the early stages of a big move, IBD screens like the IBD 50, Sector Leaders and the IBD Big Cap 20 have a track record of outperforming the S&P 500.
You can also further streamline your search for the best stocks to buy and watch with Leaderboard, which identifies leaders near a buy point and provides ongoing technical analysis and timely alerts to potential buy and sell signals. In the Best Growth Stocks To Buy And Research columns below, you’ll see highlights of stocks on Leaderboard right now, or a look at key investing lessons learned from recent Leaderboard stocks.
Best Growth Stocks To Buy And Research
Technical Analysis: What Is A Buy Point?
Foreseeing the move by a stock with terrific fundamentals, a No. 1 ranking in its industry, and loads of fund sponsorship, before it happens is crucial. If such a stock breaks out with force, then you’re more likely to grab shares at the proper buy point.
Think of the “buy point” as the ground floor of a potential elevator-like advance to new highs. It’s not enough to just buy the right stock. You have to buy the right stock in the right way at the right time. Read More
Technical Analysis: What Is A Stock Breakout?
For new investors unfamiliar with investing terms, the word “breakout” or the phrase “stock breakout” might sound like something that belongs in a prison movie.
In a way, that’s a useful analogy. Resistance levels and support levels may imprison a stock for weeks or even months. The consolidation lets the stock rise so far and then slaps it back down. The stock may sink so far and then climb back into the bigger part of the consolidation. Then one day our imprisoned stock knifes upward, like a convict who plotted and delivered on a breakout.
If an investor grasps this simple concept, then buying a stock as it breaks out of a consolidation can lead to honest profits. Read More
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