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 (http://en.wikipedia.org/wiki/Return_on_equity) 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. CAN SLIM 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
Mon Sep 6 02:04:18 2010

If a stock isn't a growth stock then there's no purpose of investing in it... true or not?
Q. I was just wondering about this. If the company doesn't show signs of growth then you won't profit much in the stock? The only way I can see is if the company offers a steady source of income profit. That's the only way i can see the stock worth investment.
Asked by Jeffersons - Fri Nov 6 17:35:46 2009 - - 4 Answers - 0 Comments

A. Mature companies grow at about the rate of the overall economy. And they start paying out dividends because they have no other investment opportunities for the cash. Some investors are looking for income and stable companies rather than growth.
Answered by jeff410 - Fri Nov 6 18:21:22 2009

Dave Ramsey talks about growth stock mutual funds?
Q. Dave always says to invest in growth stock mutual funds. What's the difference between Growth Stock Mutual Funds and just plain old Mutual Funds.
Asked by Hy go Prefecture - Mon Sep 29 22:16:24 2008 - - 2 Answers - 0 Comments

A. He specifically says (from the first source): "Mutual Funds Here s my approach. I select mutual funds that have a winning track record of more than 5 years and preferably more than 10 years. I don t look at their 1 year or 3 year track records because I think long term. I spread my investing evenly across four types of funds. That means I put 25% of my investment amount into each of the following: Growth and Income Funds Growth Funds International Funds Aggressive Growth Funds But before you get to mutual funds he states: "If you receive a company match in your 401(k), 403(b), or TSP; invest in those plans, up to the match, first. Once your contribution equals the company match, fully fund a Roth IRA for you and your spouse. If… [cont.]
Answered by mldjay - Tue Sep 30 10:31:52 2008

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

From Yahoo Answer Search: "Growth stock"
Mon Sep 6 06:41:42 2010

25 M'sian stocks that are expected to outperform the FBM KLCI - Malaysia Star
news.google.com
25 M'sian stocks that are expected to outperform the fbm klci

Malaysia Star

While the stock is no longer cheap at 19.6 times annualised 2010 earnings, a positive management track record, decent earnings per share (EPS) growth of 32% ...
Brazil Stocks Open Lower On Outlook For Rates, Global Economy - Wall Street Journal
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Brazil Stocks Open Lower On Outlook For Rates, Global Economy

Wall Street Journal

rio de janeiro (Dow Jones)--Brazilian blue-chip shares opened lower Thursday on concerns about global economic growth and expectations for ...



and more »
World stock markets slump on fears over European debt levels - Daily Star - Lebanon
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World stock markets slump on fears over European debt levels

Daily Star - Lebanon

But the best antidote to debt is economic growth . In difficult times like these, it is all the more important that we combine all our forces in Europe to ...



and more »

From Google News Search: "Growth stock"
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[source page]

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

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Best Growth Stock

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Q2 EPS of $0.18 vs loss $0.18 last year * Operating EPS $0.23 meets Wall Street view * Revenues up fourfold to $351 million * Raises 2010 sales forecast to 1.35 GW from 1.0 GW * Shares sink 8.5 percent (Adds analyst comment, ...

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How to purchase the best for under $10
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Mon, 25 Jan 2010 10:54:08 PST

Penny Stock Specialist editor Frank Curzio shares his Secrets & Strategies on how to purchase the best growth stocks for under $10. A &quot ... youtube.com.

Why Apple's Are Less Expensive Today
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Why Apple's Are Less Expensive Today

Wed, 23 Jun 2010 04:39:54 PDT

Given its strong growth, Apple is a less expensive stock today than it was two to four years ago, says RS Growth's Allison Thacker.. tutorialsvideo.​net.

SOMX Video Alert
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From Google Video Search: "Growth stock"
Mon Sep 6 06:41:41 2010