Definition

Noun: - A share of ownership in a company whose earnings are increasing at a faster-than-average rate compared to the overall market or its industry sector, and which is expected to continue this trend. Investors typically buy these stocks anticipating that the company's value and share price will rise significantly in the future, rather than for immediate dividend income.

Usage

• Used to describe a specific category of equity investment.
• Typically contrasts with "value stock" or "income stock."
• Often associated with companies in expanding industries or with innovative products.

Examples

• "Many technology companies are considered growth stocks due to their rapid expansion and reinvestment of profits."
• "Her portfolio is heavily weighted toward growth stocks, as she is investing for long-term capital appreciation."
• "Analysts downgraded the company from a growth stock to a value stock after its market segment matured."

Advanced Usage

• "To be a classic growth stock": Describes a company that perfectly exemplifies the characteristics of high earnings growth and reinvestment.
  • For a decade, it was considered a classic growth stock in the renewable energy sector.
• The term can be used attributively (as a noun modifier).
  • He specializes in growth-stock investing strategies.

Variants and Related Words

• Growth investing (n): An investment strategy focused on buying growth stocks.
• Growth company (n): A company whose business is expanding and generating increasing earnings, typically corresponding to a growth stock.
• Growth fund (n): A mutual fund or ETF that primarily invests in growth stocks.

Synonyms

• Capital appreciation stock: Emphasizes the primary investment goal of increasing share value.
• Expansion stock: Highlights the company's state of growth.

Antonyms

• Value stock: A stock considered undervalued relative to its fundamentals, often from established companies.
• Income stock: A stock purchased primarily for its consistent dividend payments.

Noun

1. stock of a corporation that has had faster than average gains in earnings and is expected to continue to