Can a growth stock also be a value stock?
I’m basically a technical/momentum trader and ignore most everything else, but I’ve started doing some research on other ways to evaluate stocks for trading. Do you have simple ways to identify each (PE ratio, PEG, earnings growth, etc.)
muncie birder, Not sure what to read into your answer. Are you saying don’t bother with either or that they are basically the same? The rate of return on both funds is unimpressive at best. To be more specific, I am not an investor – I am a professional trader and I am just looking for some additional edge when selecting my trading candidates. I wanted to see if there’s anything that I’ve been missing by ignoring these two concepts. I can’t determine the difference, really. Maybe that’s your point. Thanks for your answer.
The confusion is created by Morningstar’s division of the world into growth OR value. This is silly and goes against the definitions.
A value investor buys stocks below their prospective intrinsic value, based upon accounting valuations.
A growth stock is a stock whose growth in earnings is expected to exceed the market as a whole.
Growth stocks can and often are value stocks.
I play a stock game and you can find a simple outline of how I manage the portfolio. It of course mimics my real managed portfolio. I use value investing but I often combine other strategies with it, including growth, but I do not require growth. I am willing to make excess money in anything including bonds and real estate.
The yellow line is my portfolio, the blue line is the average of the top 100 investors of the 70,000 participants.
As a trader, you could make a killing combining the stategies by limiting your trading to value stocks or value stocks that are also growth stocks.
The portfolio is at http://www.marketocracy.com/cgi-bin/WebObjects/Portfolio.woa/ps/FundPublicPage/source=CaHiHdImDlIfEbAoMaKiAbOa
How To Find Growth Stocks in Google Stock Screener