Course 405:
Classic-Growth Stocks
In this course
1 Introduction
2 How Fast Has It Been Growing?
3 What Are the Trends in Growth Rates?
4 Where Is Growth Coming From?
5 Is Profitability Keeping Pace with Growth?
6 What Is the Company Doing with Its Profits?
7 Is the Company's Debt Leverage Increasing?
8 How Has the Stock Performed?
9 How Do the Stock's Price Valuations Compare with Those of Similar Firms?
10 Conclusion: Quality versus Price

Classic-growth companies are the stalwarts of the investing world: If the S&P 500 were a stock, it would fit in the classic-growth category. While their growth rates aren't setting the business world on fire, classic-growth companies are growing respectably faster than the general economy and most pay a modest dividend. These companies are also generally mature firms that have relatively predictable, visible earnings. Unlike speculative-growth companies, classic-growth firms have plenty of profitability to go with their growth. Classic-growth companies are generally better established than speculative- and aggressive-growth companies, and they have a core business or businesses that are mature and solidly profitable. McDonald's MCD fits the classic-growth type to a T. Demand for its hamburgers and fries is steady from year to year, and its powerful brand name has helped it garner an impressive track record of growth for a company of its size.

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