High flying growth stocks that are resisting market jitters

Wednesday, Sep 11 2019 by
13
High flying growth stocks that are resisting market jitters

Over the past two years, there’s been a quite understandable sense of unease among investors. Confidence has been knocked by the unpredictability of Brexit and the trajectory of economic growth at home and abroad. Like the dull thud of a mild headache, you might sometimes forget about it, but that nagging pain is always there.

But while the outlook is - as always - uncertain, there are some stocks that are so far resisting these concerns. For some of the market’s fastest moving growth shares, it seems to be business as usual.

Before we look at the traits of some of these fast growing firms, what is it about the market that suggests that sentiment is wavering? Well, at just over 4,000 points, the FTSE All Share index - a rough, market-cap weighted cross-section of the UK market - is virtually unchanged from where it was a year ago. In fact, while there have been some gentle swings, the index is actually very little changed on where it was two years ago. So in many ways, the market has been drifting for months.

5d79168da6bafFTSE_All_Share_Index_Chart_

But of course, the index is just the average. It’s as close to a barometer as we’ve got for measuring investor confidence, but it doesn’t tell the whole story. Dig a little deeper and it’s possible to find fast growing stocks that are holding up well well in these drifting conditions.

This of course is the classic territory of growth investors. Looking for fast moving stocks with the power to electrify investment returns has been the bread and butter strategy of investors ranging from the American legends Philip Fisher and T. Rowe Price to more modern day heroes like Peter Lynch and Jim Slater. 

In search of growth

The job of the growth investor is to find companies that are at an early stage in the growth cycle. Firms need to be growing their earnings quickly but they also need some kind of edge that will protect them from competition. Growth can evaporate quickly if a business isn’t strong enough to protect itself.

To find them, growth investing strategies tend to look at two key factors: historic growth and forecast growth. Typically, the early signs of a growth stock will be a track record of earnings-per-share growth - certainly over the previous three years. Some investors will even want to see…

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Disclaimer:  

As per our Terms of Use, Stockopedia is a financial news & data site, discussion forum and content aggregator. Our site should be used for educational & informational purposes only. We do not provide investment advice, recommendations or views as to whether an investment or strategy is suited to the investment needs of a specific individual. You should make your own decisions and seek independent professional advice before doing so. Remember: Shares can go down as well as up. Past performance is not a guide to future performance & investors may not get back the amount invested. ?>


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12 Comments on this Article show/hide all

Silver Moon Thu 9:38am 1 of 12
2

Ben, 'In addition, six-month momentum had to be positive and also included are details about the forecast earnings growth and PE ratios of these stocks - as well as how they rate against Stockopedia’s StockRank ‘Style’ framework.' - Sorry to say, the link that follows is buggy on my W7 desktop pc, all I see is a rotation of gurus quotations.

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Anthony Beater Thu 10:34am 2 of 12

I agree with the feeling that the Market is going nowhere - marking time. There is too much global unrest.  However, I find this resume very helpful . I like the look of Wizz Air - especially in view of pilots going on strike and more likely to hit the larger airlines.  It has a very steady growth and certainly appeals.

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LinnetIC Thu 10:46am 3 of 12

Hi Ben,  Thoughtful article and much of interest to me.  However, I noticed the same bug as mentioned by Silver Moon...on a MacBook Pro, where it scrolls through the guru screens.

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Trevor47 Thu 12:59pm 4 of 12

Ben, yes I am having trouble with Screen link too, like Silver Moon it keeps gyrating on quotes

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BMeth Thu 2:02pm 5 of 12

Unfortunately the link to the screen does not work...

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Chrisspencerphillips Thu 3:39pm 6 of 12

Interesting article on high growth stocks but could you explain why you have given a company like Ideagen a Growth Rank of 99 and yet a Stockopedia Stock Rank of only 59?

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HumourMe Thu 4:12pm 7 of 12

In reply to post #512606

Interesting article on high growth stocks but could you explain why you have given a company like Ideagen a Growth Rank of 99 and yet a Stockopedia Stock Rank of only 59?

Differences are explained here:

https://help.stockopedia.com/product-guide/stockranks/basics/the-stockrank

Essentially growth rank isn't part of the stockrank.

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herbie47 Thu 4:40pm 8 of 12
1

Screen link works ok for me, I'm on the old system.
Some of those have already changed to Falling Stars.

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jules2k6 Fri 8:28pm 9 of 12

The link to the screen does not load for me using firefox. You just get the quotations as mentioned by silver moon

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kennzo2020 Sat 7:31am 10 of 12

Sorry but the link not working on my Android tablet either, any chance someone can get the link fixed, thank you?

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HumourMe Sat 8:53am 11 of 12

via the old site the link works and gives https://www.stockopedia.com/screens/top-growthrank-670621/ 

Just tested - this direct link doesn't work either - via the new site. So to follow the link switch to the old site, if you have the option or manually create this:


5d7c9d54c6cd2pic.jpg


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kennzo2020 Sat 8:57am 12 of 12

In reply to post #513146

Not sure what you mean by 'via the old site', but whenever I try this link on PC, tablet or phone it just keeps rotating around the Guru quotes screens on an infinite loop.
Thanks anyway

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About Ben Hobson

Ben Hobson

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