|
Sections
Agriculture
Applied sciences
Arts
Belief
Business
Chronology
Culture
Education
Environment
Geography
Health
History
Humanities
Language
Law
Life
Mathematics
Nature
People
Politics
Science
Society
Technology
|
In finance, a growth stock is a stock of a company that generates substantial and sustainable positive cash flow and whose revenues and earnings are expected to increase at a faster rate than the average company within the same industry.[1] A growth company typically has some sort of competitive advantage (a new product, a breakthrough patent, overseas expansion) that allows it to fend off competitors. Growth stocks usually pay smaller dividends, as the company typically reinvests retained earnings in capital projects.
Criteria [edit]
Analysts compute Return on equity (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.[2] CAN SLIM is a method which identifies growth stocks and was created by William O'Neil a stock broker and publisher of Investors Business Daily. [3]
Growth vs. Value investing [edit]
Since 1982, the growth stocks have beaten value stocks during:[4]
- 1982
- 1985
- 1987
- 1989-91
- 1995-99
- 2007
- 2010 [5]
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.[6]
See also [edit]
External links [edit]
References [edit]
 Aggressive Growth Stock Picking Investors love growth stocks in the hopes of finding the next Apple or Google. Learn how to find more winners and lock in more profits by investing the Zacks... |  Aggressive Growth Stock Picks-Nov. 21, 2012 These packaging and apparel stocks make for interesting aggressive growth opportunities. |  What is the Difference Between a Growth and a Value Stock? In today's edition of "ask a fool", Austin answers one of the most common questions we get at The Motley Fool: what's the difference between a growth and val... |  Common Stock Constant Growth Discussion of Common Stock along with an example of the Constant Growth Pricing Model. |  This Week's Growth & Income Stocks: (IVZ) (WSBC) Growth & Income Stock Strategist, Todd Bunton, highlights Invesco (IVZ) and WesBanco (WSBC) on May 23, 2013. |  Investor Club ตอน7 การลงทุนในหุ้นเติบโต (Growth Stock) ออกอากาศทาง www.efinancethai.com ออกอากาศ ทาง E-Investor Channel ดำเนินรายการโดย "คุณแอน" ศุภรัตน์ สุวรรณกุลวิไล "คุณฟ้า" ศศิกุลวี ไพจิตร. |  Value or Growth Stocks? http://www.moneyshow.com/?scode=013356 Mark Hulbert sees some signs that we are entering a period where value stocks will outperform growth, and he has some ... |  Excel Finance Class 67: Irregular Dividend Payments, Followed by Constant Growth -- Stock Valuation. Download Excel workbook http://people.highline.edu/mgirvin/ExcelIsFun.htm Learn how to use the Dividend Growth Model and discounted cash flow analysis to val... |  This Week's Growth & Income Stocks: (LVS) (WYNN) Growth & Income Stock Strategist, Todd Bunton, highlights Las Vegas Sands (LVS) and Wynn Resorts (WYNN) on May 16, 2013. |  Trading Growth Stocks http://www.ProfitableTradingTips.com - Trading Growth Stocks The recent dramatic plunge in stock price of Netflex - NFLX - brings to mind the issue of tradin... |
| |
GlobeNewswire (press release)
Fri, 24 May 2013 06:17:20 -0700
BOSTON, May 24, 2013 (GLOBE NEWSWIRE) -- LPL Financial Holdings Inc. (Nasdaq:LPLA) (the "Company"), parent company of LPL Financial LLC ("LPL Financial"), announced today that Mark Casady, chairman and chief executive officer, will present at ...
| | |
TheStreet.com
Fri, 24 May 2013 07:14:46 -0700
Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings ...
| | |
Seeking Alpha
Thu, 23 May 2013 07:47:58 -0700
Intrepid Potash, Value Or Growth Stock? Both! May 23 2013, 10:47 by: Nick Gagnon | about: IPI. Now, I know what you're thinking, there's been a lot of talk of "broken mining stocks," and to be honest there's a plethora of attractive commodity stocks ...
| | |
TheStreet.com
Fri, 24 May 2013 07:41:35 -0700
Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings ...
| | |
TheStreet.com
Fri, 24 May 2013 07:41:36 -0700
Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings ...
| | |
Forbes
Wed, 15 May 2013 10:21:57 -0700
There's little question that Wal-Mart is the greatest retailer on the planet. They are scheduled to report 1Q 2014 earnings before the opening bell on Thursday, May 16. According to the Forbes' earnings preview by Narrative Science found here, analysts ...
|  Sudan Vision |
Wall Street Journal
Fri, 26 Apr 2013 14:04:05 -0700
Many people still think of Apple as an exciting "growth" stock, promising hockey-stick returns. They're wrong. These days the company is better viewed as a so-called value stock—a slightly dull one that should be owned for the cash flow and dividends ...
| | |
TheStreet.com
Thu, 23 May 2013 02:15:11 -0700
Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings ...
|
Oops, we seem to be having trouble contacting Twitter
|
|
You can talk about Growth stock with people all over the world in our discussions.
|
