Top Stocks To Buy In a Growing Economy

Momentum Rider strongly recommends that when you are looking for the top stocks to buy that you look at high growth stocks. That means that you should scan for high growth companies, high growth sectors, and high growth countries or markets. For some reason, most investors are lured by beaten down and broken stocks more than stocks in strong uptrends and with high earnings growth. While the Momentum Rider trading system can show you how to identify the beaten down stocks with good value, that is not where the majority of high returns are achieved. Searching for high growth stocks will always be the best path for finding the top stocks to buy.

The best method by far for achieving high returns consistently over time is to invest in the highest growth stocks, sectors, and markets. For example, there is explosive growth occurring in China, Indonesia, Brazil, India, Thailand, Chile, Columbia, and several other countries in Asia and Central and South America. Their GDP growth numbers have been higher than 7% in the past 5 to 10 years with some even over 10% depending on the year. While the last eighteen months have been tough for many of them with slowing growth, they will rebound. Their growth will pick up again after the financial system gets past the Euro crisis for most of these countries – especially China, Brazil, and India. These countries will have some of the top stocks to buy in the coming years. They alreay have very high growth stocks for making big profits. For example, BIDU and SPRD, China stocks, were huge winners for Momentum Rider portfolios in 2010 and they still outperformed the market in 2011.

In comparison, the US has slowed down significantly in GDP growth in the recent past with typical numbers at 3% or lower. What this slower growth information tells you is that investors will find it tougher to find high growth stocks in the US. It doesn’t mean there aren’t plenty of them in the United States. It just means that the US economies growth may not facilitate the individual company’s growth as much as countries outside the US. So investors should also look at high growth stocks located in emerging market countries to achieve high returns.

Even in falling markets, the proper scans for the top stocks to buy can always find high growth stocks that will outperform the market. For example, Momentum Rider recommended the following high growth stocks in the drug and biotech industry in 2011 that were huge winners: VRUS, JAZZ, QCOR, ARIA, and ELN to name just a few. The research needs to identify high growth sectors with high growth stocks that have a good uptrending chart pattern.

Typically, we look for companies with over six consecutive quarters of earnings and sales growth rates > 20%, good pre-tax profit margins > 15%, one of the top positions in a strong industry group, good institutional buying and ownership, recent acceleration in earnings, and a product with a good macro story – like AAPL and its I-phone. It simply comes down to performing a top down approach to find the top stocks to buy – which are high growth stocks. The technical price pattern also needs to be in a strong uptrend or a recent high volume breakout from a basing pattern.

For consistently outperforming the market and finding the top stocks to buy, your trading and investing focus should be on high growth stocks. Growth is the strongest driver by far for of a country’s, sector’s or stock’s price action. Do some simple research on where the highest growth stocks are or take advantage of Momentum Rider’s subscriptions and free newsletters to find them for you. You will be well on your with the top stocks to buy for becoming a profitable trader and investor.

We identify top high growth stocks almost every week so look at our MR Power Stock Newsletter to get the top stocks to buy.