In finance, growth stocks are stocks of companies that have historically achieved measurable growth traits, particularly characterized by strong earnings growth and high profitability ratios.

Criteria

Analysts compute ROE by dividing a company's net income into average common equity. To be classified as a growth stock, analysts generally expect companies to achieve a 15 percent or higher return on equity. CANSLIM is a method which identifies growth stocks and was created by William O'Neil a stock broker and publisher of Investment Business Daily.

Growth vs. Value investing

Since 1982, the growth stocks have beaten value stocks during:

  • 1982
  • 1985
  • 1987
  • 1989-91
  • 1995-99
  • 2007

During the rest of the years, the value stocks have done better. Note that the 5 years preceding the dot-com bubble burst, growth stocks did better than value, since then value stocks have generally done better.

Some advisors suggest investing half the portfolio using the value approach and other half using the growth approach.

From Wikipedia under the GNU Free Documentation License
Fri Feb 12 21:47:08 2010

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not found in other software Used in other HGSI tools these three indexes can be ranked to compare the performance of the User Groups

From Yahoo Image Search: "Growth stock"
Sun Feb 7 18:19:32 2010

The Snot Wheel: LED Stocks
snotwheel.blogspot.com
The Snot Wheel: LED Stocks

Snotwheel

hu, 31 Dec 2009 22:22:00 GM

Hence the name, ". growth stocks. ". Naturally, . growth stocks. come with higher P/E ratios because P/E's are a direct function of growth. As a rule of thumb, a fair value for a . growth stock. can be calculated by multiplying its annual growth ...

Easier profits from this trading method
stockhouse.com
Easier profits from this trading method

Jeff Clark, Growth Stock Wire

Wed, 30 Dec 2009 17:24:00 GM

Can be a good contrary indicator Read More.

FOREX Beats the Stock Market | Investing Blog
nanothailand.org
FOREX Beats the Stock Market | Investing Blog

ana

Sun, 03 Jan 2010 20:30:58 GM

Corporations issue . stocks. to boost capital for . growth. , equipment and different projects. . Stocks. are a very common form of investment for years. Each share of a.

From Google Blog Search: "Growth stock"
Sun Jan 3 17:58:39 2010

Kuwaiti Central Bank Cuts Key Rate to 2.5% to Boost Growth - BusinessWeek
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Kuwaiti Central Bank Cuts Key Rate to 2.5% to Boost Growth

BusinessWeek

Kuwait's benchmark stock index, the Kuwait Stock Exchange Index, rose yesterday to the highest since Dec. 27, a fourth day of gains, and was up 1.4 percent ...



and more »
Is the Market 'Priced for Perfection'? - New York Times
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Is the Market 'Priced for Perfection'?

New York Times

In the January sell-off, the big winners from last year, like emerging-market stocks and shares of blue-chip growth companies, tumbled the most. ...



and more »
Airline stocks up as Continental revenue improves - MarketWatch
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Airline stocks up as Continental revenue improves

MarketWatch

... MarketWatch new york (MarketWatch) -- Airline stocks were aloft Tuesday morning after Continental Airlines reported strong traffic growth for January, ...



and more »

From Google News Search: "Growth stock"
Sun Feb 7 18:23:12 2010

Where do you check the growth rate of a stock?
Q. i'm in yahoo finance looking at a stock profile but i see nothing that says "growth rate". where is it?
Asked by Sleepyguy - Tue Apr 15 02:57:02 2008 - - 1 Answers - 0 Comments

A. This will help you 100% smartmoney.com/pricecheck /index.cfm?story=workshee t
Answered by Michelle C - Tue Apr 15 07:23:05 2008

What do you think will be hotter is 2007, Growth or Value stock funds?
Q. Value has had a few years of strong growth while growth funds have been lagging. Where do you think the better investment will be in 2007? I have diversified my portfolio with International, small cap and large cap... For my US investments, do you think value or growth will perform better.
Asked by MR MONEY - Mon Dec 11 12:04:22 2006 - - 6 Answers - 0 Comments

A. Growth is undervalued... if you are long term, start getting back into growth, especially US large cap growth.
Answered by James - Tue Dec 12 01:05:23 2006

Is it more important for a stock to show growth in earnings from the previous quarter or from the year before?
Q. which one is more important? is good idea to invest in a stock that shows higher earnings for each quarter, but earnings were significantly down from the year before quarter?
Asked by w s - Wed Jul 8 10:13:43 2009 - - 3 Answers - 0 Comments

A. You have to also figure for seasonality and special events. A retail company that has a super fourth quarter that ends with December but a lousy first quarter that ends with March is normal. If XYZ sells retail coffee, then it should be going great guns all winter and business depressed all summer. I had some money in a pharmaceutical a while back, exellent profits, oodles of cash, but the price kept falling so that it was in danger of being delisted. They merged with another similar company and the applied purchase value was close to 50 percent more than it was selling for before. Their earnings and the merger partner earnings will be pretty deceptive in the next period. With larger companies, mergers that are primarily buyouts of small… [cont.]
Answered by Rabbit - Wed Jul 8 13:30:48 2009

From Yahoo Answer Search: "Growth stock"
Sun Jan 3 16:08:02 2010