Glossary Background

Growth Stocks

Growth stocks are shares in companies expected to outpace the broader market, driven by robust fundamentals. These stocks exhibit rapid growth potential due to factors like a strong balance sheet, high Earnings Per Share (EPS), and favorable Price-to-Earnings (P/E) ratios. Such characteristics signal the company’s ability to boost profits over the medium to long term. Investors favor growth stocks for their capacity to deliver above-average returns, often reinvesting earnings to fuel expansion rather than paying dividends, making them appealing for those seeking capital appreciation over time.