Enlarge Your Portfolio with Growth Stocks

Physician's Money Digest, October 2006, Volume 13, Issue 10

Money

Money

Money

Physician-investors involved in thegrowth stock market take their chances onbig earnings over the long term, but with aheightened degree of volatility. magazine advises that there are threethings you need to be sure of before youget into the growth stock game. First, youneed to prepare to be in for the long haul.Many growth stocks won't show you theirfull potential for nearly a decade. But ifyou're patient, you have a greatchance of coming out ahead.Second, growth doesn't necessarilymean share prices will rise, especiallyif they're trading at highprice/earnings ratios. Alwaysbuy at fair valuations, suggests. Third, check analysts' ratings of a growth stock you'reinterested in. If they're lowering theirratings for a stock, it probably means thatits growth prospects are on the decline.That being said, recommends thefollowing stocks that have a good chanceof experiencing substantial growth: Aetna,Applied Materials, Cisco, FedEx, Staples,Target, and Texas Instruments.