Sentences with phrase «growth stocks tend»

During periods of accelerating economic growth stocks tend to outperform bonds and bond yields are forced to rise in order to remain attractive as investments.
Value stocks tend to outperform by falling less during bear markets and growth stocks tend to outperform in the bullish phase.
High - quality dividend growth stocks tend to command premium valuations.
For that reason, dividend growth stocks tend to attract owners who are less likely to sell shares in a panic when the stock's price drops.
You just won't end up with a lot of high growth stocks this way and high growth stocks tend to get popular at some stage in a bull market.
Most leading growth stocks tend to rise 20 % — 25 % between consolidation areas.
Growth stocks tend to be linked to companies with strong recent performance or exciting prospects for the future.
Growth stocks tend to have significant returns on equity, also known as ROE, of the least 15 % or more.
To maintain growth rates this high over any extended period, capital spending is required; for this reason, growth stocks tend to retain most of their earnings, paying little or no cash dividends.
«Dividend growth stocks tend to be of higher quality than those of the broader market in terms of earnings quality,» write S&P strategists Tianyin Cheng and Vinit Srivastava.
Because of their high prices and low yields, growth stocks tend to have less downside protection and more volatility than cheaper companies.
You just won't end up with a lot of high growth stocks this way and high growth stocks tend to get popular at some stage in a bull market.
I'm a technology guy, so my way of investing in growth stocks tends to involve electrons, photons, radio waves and other geeky stuff.

Not exact matches

As a result, when applied to Canadian stocks, the PEG screen tends to come up with older companies seldom characterized as high - growth stocks.
Although value stocks typically hold up better in times of volatility, this bull market has been exceptionally smooth — up until the last year, that is — and favored high - growth momentum stocks, which tend to have more expensive valuations.
The stronger the expectations for earnings growth, the higher the stock market tends to climb as well as valuations expand.
This prompted a rebound in commodities, including oil, as well as in value stocks, which tend to do better when growth expectations are buoyant.
Right now the fund, which has tended to short larger stocks, is cautious about the switch from small and mid-cap stocks to large caps as «investors chase safer growth options as expectations of higher global GDP growth is priced in».
This pattern is consistent with the historic norms: When economic growth and the central bank policy rate are both low, the correlation between stocks and bonds tends to be negative.
The kind of investors I tend to come across have already made a lump of money in some other endeavour, and are now looking to invest some of it in the stock market for bond - beating income and growth.
Small - cap companies usually focus on one or two growth prospects and maximize those opportunities, whereas small - cap stocks tend to be centered on products involving innovative technologies.
A bear market tends to favor lower volatility stocks while a bull market favors higher beta / growth stocks.
The fund seeks to track a growth - style index of medium - sized companies, whose stocks tend to be more volatile than large - company stocks.
This low - cost index fund offers exposure to small - capitalization U.S. growth stocks, which tend to grow more quickly than the broader market.
However, the rate of dividend growth tends to be low on such stocks.
Whilst high yield stocks tend to be less volatile than growth stocks, they will still be subject to market forces and outside influences that management can not control.
Dividend stocks are enticing to investors during periods of volatility because in such a market they tend to perform well relative to more growth - oriented or higher - risk equities.
In contrast, dividend growth stocks, primarily from cyclical sectors like technology, tend to be higher quality and less expensive than those higher yielders.
The most important thing to remember is that stocks tend to move in cycles and periods of decline are typically balanced out by periods of growth.
The Fund invests in growth stocks, which may be more sensitive to market movements because their prices tend to reflect future investor expectations rather than just current profits.
While extensive research shows that value stocks tend to outperform growth companies over the long term, the opposite occurred in 2007.
A growth stock is a company stock that tends to increase in capital value rather than high yield income.
The portfolio tends to be invested in blue - chip stocks with a history of growth, as well as a small allocation in treasury securities.
Since large - cap stocks tend to move slowly, small and mid-cap growth stocks comprise a majority of the trades we make in most years.
The appeal increases when you consider that dividend - growth companies tend to be of higher quality and lower volatility than the broader stock market.
This predictive power is strong for speculative stocks with highly subjective valuations (small - capitalization stocks, stocks without positive earnings, growth stocks and stocks that pay no dividend), because their prices tend to be most overvalued when sentiment is high.
That may be because the underlying companies tend to be mature and stable, or simply because paying high prices for growth stocks is less appealing when inflation and interest rates are elevated.
Based on BlackRock research, stocks with a history of dividend growth have tended to outperform in a rising rate environment and may hold up well relative to other segments of the stock market more susceptible to higher rates.
This dynamic approach to value investing tends to distinguish our portfolios from an index - based approach, oftentimes giving us exposure to stocks that might traditionally be classified as «growth
Based on BlackRock research, stocks with a history of dividend growth have tended to outperform in a rising rate environment and may hold up well relative to other segments of the stock market more susceptible to higher rates.
Behaviorally, people may ignore these potentially profitable, yet also perhaps more boring companies, and instead veer toward potentially more exciting, yet also less stable, growth and lottery - like stocks (for example, because the more exciting stocks tend to be featured in colorful news stories).
Stock prices tend to rise during periods of inflation when more dollars are pouring into the markets, independent of real economic growth.
In our paper «A Case for Dividend Growth Strategies,» we compared dividend growth strategies to high - dividend - yielding strategies and concluded that dividend growers, which tend to be higher quality companies, have generally shown greater resilience in unsteady markets and could address concerns about dividend stocks in a rising - rate environment, to some eGrowth Strategies,» we compared dividend growth strategies to high - dividend - yielding strategies and concluded that dividend growers, which tend to be higher quality companies, have generally shown greater resilience in unsteady markets and could address concerns about dividend stocks in a rising - rate environment, to some egrowth strategies to high - dividend - yielding strategies and concluded that dividend growers, which tend to be higher quality companies, have generally shown greater resilience in unsteady markets and could address concerns about dividend stocks in a rising - rate environment, to some extent.
When the economy is expanding, earnings tend to grow across the market and in such an environment, investors historically could purchase value cyclical stocks at a much more attractive price than evergreen growth stocks.
There is a downside to growth investing: Since expectations for growth are high, if a company misses a target, investors tend to panic and its stock price will fall hard.
Value and growth stocks are offering similar valuations, and when investors believe they can get more growth for the same price, they will tend to favor growth stocks.
One, the prices of dividend stocks tend to be less volatile over time than non-dividend payers or «growth» stocks.
The managers believe they have «an idiosyncratic approach to stock picking that means [they] tend to look in parts of the market largely ignored by more traditional growth investors.»
In contrast, dividend growth stocks, primarily from cyclical sectors like technology, tend to be higher quality and less expensive than those higher yielders.
Stocks in our Aggressive Portfolio, such as these four, tend to be more highly leveraged and more volatile than those in our Conservative Growth or Income - Seeking Portfolios.
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