Since we are mostly trading Philippines stocks, sometimes we missed the opportunity on US stocks that are performing well. One way to accumulate earnings fast is to properly diversify our investments and sometimes it involves moving our assets internationally if the local stocks are not performing well.
- What are Growth Stocks?
- How Do we Identify Growth Stocks in US Market
- Why should you buy growth stocks?
- What are the examples of growth Stocks in the US Market
- What are the growth stocks in US that I personally look at
- What are the stock code of growth Stocks
- How to Manage risk when Investing in Growth stocks
What are Growth Stocks?
Growth stocks refers to those those stocks that are performing better or those that have above average earnings reports as compared to market average. They are selling better on their products and expected to have a recurring growth in earnings.
These types of stocks often look expensive as the stock price action have higher highs formation and normally have higher Price to earnings ratio.
How Do we Identify Growth Stocks in US Market
1. Normally you would like to find these stocks in the leader of the industry. Those indices that are still moving upward as of now even though the market is relatively weak.
2. Strong Sales growth is the main gauge usually used by those who are studying them. Every quarter sales reports are increasing together with its forecast. So typically these depends on the demand. For example, does it support automotive products with inclination to electric vehicles? Nowadays every government is concern about climate change.
3. The product they build is a leader in market share. If the company is scaling and moving up its growth, are they the top 5 in their industry category?
4. Quarter over quarter yearly growth is expanding. Stocks should continuously show this characteristic as time goes by, stock price can move down in the short term but fundamentals will catch up in the long term.
Why should you buy growth stocks?
Growth stocks provides the best of returns as the market for this types of stocks are not yet saturated. If the stock is just on the initial stage of growth it will project above average up move in stock price. Most traders or investors value growth stocks.
What are the examples of growth Stocks in the US Market
Here’s a list of growth stocks on my personal list.
Take note that this is not an investment advise but rather for information purposes only. Study well and base all your buying and selling action on your personal assessment as investing in stock market have risk.
What are the growth stocks in US that I personally look at
Canadian Solar offers solar modules, solar power systems, off-grid solar home systems and other solar products.
The global PV project business unit of Canadian Solar, which focuses on project development, system design, engineering, and financing, has been in operation for more than six years and creates PV projects all over the world. Canadian Solar may also deploy solar systems with capacities ranging from a few hundred kilowatts to megawatts.
UFP Technologies, Inc., founded in 1963 and based in Newburyport, Massachusetts,
Using highly specialised foams, films, and plastics, UFP Technologies, Inc. designs and custom-manufactures parts, sub-assemblies, goods, and packaging largely for the medical sector.
Vertex Pharmaceuticals
Based in Boston, Massachusetts, Vertex Pharmaceuticals is an American biopharmaceutical business. One of the first biotech companies that apply rational drug design explicitly as opposed to combinatorial chemistry.
Visa Inc.
The corporate headquarters of the American financial services giant Visa Inc. are in San Francisco, California. It makes electronic money transfers possible anywhere in the world, most frequently via prepaid, debit, and credit cards bearing the Visa name. One of the most valuable firms in the world is Visa.
Shopify Inc
A multinational Canadian e-commerce business with its main office in Ottawa, Ontario, is Shopify Inc. Its own e-commerce platform for online storefronts and retail point-of-sale systems is known as Shopify.
Tesla, Inc
Austin, Texas serves as the corporate headquarters of the American automotive and clean energy business Tesla, Inc. Tesla creates and produces electric vehicles, residential and grid-scale battery energy storage, solar panels, solar roof tiles, and related goods and services.
Repligen is an American company devoted to the development and production of materials used in the manufacture of biological drugs. The company is based in Waltham, Massachusetts, and incorporated in Delaware in 1981. A public company, Repligen is listed on the NASDAQ exchange under the symbol RGEN
Ameresco, Inc. is a leading cleantech integrator and renewable energy asset developer, owner and operator. Our comprehensive portfolio includes energy efficiency, infrastructure upgrades, asset sustainability and renewable energy solutions delivered to clients throughout North America and Europe.
TELUS International is a Canadian technology company which provides IT services and multilingual customer service to global clients. Clients include corporations in technology, games, communications & media, eCommerce, fintech, travel & hospitality, healthcare, and automotive industries
Chipotle Mexican Grill, Inc., often known simply as Chipotle, is an American chain of fast casual restaurants in the United States, United Kingdom, Canada, Germany, and France, specializing in bowls, tacos and Mission burritos that are made to order in front of the customer.
PGT Innovations, Inc. engages in the manufacture and supply of windows and doors under the brand names PGT Custom Windows + Doors, CGI, WinDoor, Western Window
Xpel manufactures, sells, distributes, and installs after-market automotive products. The company offers automotive surface and paint protection films, headlight protection, and automotive and architectural window films, as well as proprietary software.
Onsemi is an American semiconductor supplier company, based in Phoenix, Arizona and ranked #483 on the 2022 Fortune 500 based on its 2021 sales.
What are the stock code of growth Stocks
| Name and Stock Code | Revenue Growth Q2, 2022 |
| Canadian Solar Inc. (CSIQ) | 61.87% |
| UFP Technologies Inc. (UFPT) | 86.25% |
| Vertex Pharmaceuticals Inc. (VRTX) | 22.46% |
| NAPCO Security Technologies Inc. (NSSC) | 27.20% |
| e.l.f. Beauty Inc. (ELF) | 26.33% |
| Performance Food Group (PFGC) | 50.66% |
| Molina Healthcare Inc. (MOH) | 18.44% |
| STAAR Surgical (STAA) | 30.04% |
| ON Semiconductor Corp. (ON) | 24.86% |
| XPEL Inc. (XPEL) | 22.05% |
| WillScot Mobile Mini Holdings (WSC) | 26.14% |
| PGT Innovations Inc. (PGTI) | 42.39% |
| Chipotle Mexican Grill Inc. (CMG) | 16.95% |
| TELUS International Inc. (TIXT) | 17.07% |
| Ameresco Inc. (AMRC) | 110.79% |
| Repligen Corp. (RGEN) | 27.41% |
| Tesla Inc. (TSLA) | 41.61% |
| Shopify (SHOP) | 15.69% |
| Etsy (Etsy) | 33.70% |
| Visa (V) | 18.68% |
How to Manage risk when Investing in Growth stocks
Set a goal for taking profits, not all stocks move in upward direction depending on the market sentiment. Even growth stocks have downsides as well. Macro fundamentals affect all stocks. A good sign to take profit is if the stock move by more than 10%. Remember bonds or banks can only earn a maximum of 3% per year and if you got 10% in a week swing, that’s very high already. Don’t be greedy.
I usually set my leverage to 2X to maintain my risk on stocks and a 20% gain is very good already.
Learn to cut loss when the stocks move against you. There are times that our entry could be a little off. Normal investors do add more when the stocks move down but this is not a good move as you will multiply your losses when it moves down further.
