Glossary › growth stock
Trading glossary · fundamentals
growth stock
A share in a company that people expect to grow fast in the future, so it can cost a lot compared with today's profits.
The fuller meaning
A stock valued mainly for expected future growth, often on a high P/E. Because much of its value lies in distant profits, it tends to come under pressure when interest rates rise; a high P/E is not automatically expensive if growth delivers.
growth stock.
Related words
adoption · analyst estimate · balance sheet · Bank of Japan · beat · bond · book value · business cycle · cash flow · central bank