These are the different Stock types:
Growth stocks are those companies expected to grow sales and earnings faster than the market average.
They sometimes trade at a high P/E ratio.
The risk is that you will buy at a high price and the stock does not perform.
Growth stocks typically don't pay dividends, companies will reinvest for future growth.
Many small-cap stocks are considered growth stocks.
Selecting your Growth Stocks:
A Strong Leadership Team
In the early days of a growing market
Growth in Sales
Avoid Overvalued Stocks
Large Target Market
Look at best growth stocks by (EPS) and (Sales Growth)
“Earnings per share (EPS) is calculated as a company's profit divided by the outstanding shares of its common stock. The resulting number serves as an indicator of a company's profitability.”
Let’s look at some companies with a good EPS for example in the retail sector:
These Companies are good value companies that trade at a discounted value:
The market overreacted on bad news, this makes it a good buying opportunity.
They have a high dividend yield.
Low P/B ratio, and a low P/E ratio (undervalued)
Value investors are long-term investors of quality companies.
The top stocks are the best performing stocks in a particular industry. You can invest in these due to the fact that you know they have dedicated customers or future potential due to the product that they deliver. You can keep an eye on these stocks by frequently comparing them to their peers.
Top 5 high stocks in America as of today is Berkshire Hathaway, NVR, Seaboard, Amazon and Alphabet, also as we know FAANG stocks: Meta(Facebook), Amazon, Apple, Netflix, Alphabet(Google).
Dividend stocks are companies that pay out regular dividends. Dividend stocks are usually well-established companies with a track record of distributing earnings back to shareholders. Dividend stocks remain one of the best opportunities for regular investors.
Some investors use the "Dogs of the Dow" investing strategy by purchasing the 10 highest dividend-yielding stocks at the beginning of each year and adjusting the portfolio every year thereafter.
What are Dividends?
A dividend is a cash payment from a company's earnings. Dividends are never guaranteed and a company will decide from time to time how and when they will pay out dividends according to the company’s performance and reinvestment strategies.
Here is a list of ETF’s for example that has a high dividend yield:
Tech stocks refer to any stock involved in the technology sector.
These stocks will be the companies that develop and improve the world as we know it. We are in the age of investing in Technology, the opportunities are out there, make sure you understand what you are investing in, selecting a solid company that ticks all the criteria regarding the financial indicators.
Only a few: The TMT sector, SCG technology, Quantum Computing, AI, Electric and Hydrogen vehicles, Battery Technology, Camera technology. VR technology, Crypto, NFT’s, Blockchain, Microchip technology and the list goes on.
Keep it simple but smart!!