growth stocks

Reinvestment-focused equity shares

Growth stocks are shares in companies expected to increase revenues and earnings faster than the market average.

Investors buy them for capital appreciation rather than dividends, accepting higher prices relative to current earnings in anticipation of future gains: Tech companies dominated the growth stocks of the 2010s.

Contrast with value stocks, which trade at lower multiples.

investment

equities

Ownership stakes in corporations

NASDAQ · S&P 500 · market capitalization · capital gains · IPO · asset allocation · brokerage · index funds · blue-chip · trading

potential

upside

Favorable aspect

emerging markets · breakout · untapped · nascent · burgeoning · market share · disruptor · hypergrowth · compounder · ten-bagger

innovation

technology

Applied scientific methods

patent · cutting-edge · entrepreneurship · automation · artificial intelligence · cloud computing · biotech · fintech · software · e-commerce

speculation

volatility

Rapid, unpredictable changeability

options · derivatives · leverage · swing trading · technical analysis · stop loss · candlestick · arbitrage · futures · hedge funds

risk

overvaluation

Appraising too highly

losses · bear market · volatility · recession · downturn · market crash · interest rates · drawdown · underperformance · dilution

examples

Tesla

EV manufacturer and surname

  • AmazonGreek warrior women
  • NetflixSubscription streaming service
  • NvidiaGraphics processor manufacturer

Apple · Google · Meta · Shopify · Salesforce · Zoom · Palantir · CrowdStrike · FAANG · tech giants

Categories
Opposites
investment return strategy

growth stocksvalue stocks

Shares considered underpriced

preferred stocks · blue-chip stocks · bonds · REITs · blue chips

risk and volatility profile

growth stocksdefensive stocks

Shares resistant to downturns

blue-chip stocks · treasury bonds · government securities

Family

growth, growing, grown, stocks, grown-up, grower, growths, outgrowth, growers

Familiarity
Top 500,000
Profile
Used worldwide · Timeless · Abstract · Rated G