Companies expanding revenue and earnings rapidly
Growth stocks are companies that are expanding their revenue, earnings, and market share at rates significantly higher than the overall market. These are businesses in high-growth industries or with innovative products that are capturing new customers and markets.
Think of companies like Amazon in its early years, or Tesla during its rapid expansion phase. Growth stocks prioritize reinvesting profits into the business — building new facilities, hiring talent, expanding internationally, or developing new products — rather than paying dividends.
Growth investors are willing to pay premium valuations today because they expect explosive earnings growth tomorrow. The goal is capital appreciation, not income. When you buy a growth stock, you're betting that its future earnings will be much higher than they are now, justifying the higher price-to-earnings ratio.
Consistent, strong revenue growth year-over-year. Growth companies expand their top line significantly faster than GDP or market averages.
Leading edge of technology, business models, or market trends. Often disrupting traditional industries with better solutions.
Operating in markets with massive growth potential. Room to expand for years without hitting saturation.
Prioritizing growth over profits. Reinvesting heavily in R&D, marketing, and expansion. Low or no dividends.
Visionary leadership with clear strategic direction. Track record of execution and scaling operations successfully.
Network effects, brand strength, technology moats, or first-mover advantages that protect against competition.
Year-over-year revenue increase
EPS growth year-over-year
P/E ratio divided by earnings growth rate
Gross profit as percentage of revenue
How efficiently the company generates returns
Our growth scoring system identifies companies with sustainable expansion. High scores indicate:
Enterprise SaaS with recurring revenue model
Revenue Growth
32%
EPS Growth
45%
Gross Margin
78%
PEG Ratio
1.4
Subscription model, expanding customer base, strong retention rates, investing in AI features
Online marketplace disrupting traditional retail
Revenue Growth
28%
EPS Growth
38%
Gross Margin
52%
PEG Ratio
1.7
Growing market share, international expansion, logistics network advantage, mobile-first
Innovative treatments with strong pipeline
Revenue Growth
42%
EPS Growth
55%
Gross Margin
89%
PEG Ratio
1.2
FDA approvals accelerating, orphan drug advantages, strong IP protection, expanding indications
Revenue growing 30%+, often unprofitable, investing heavily in expansion. High risk, high reward. Examples: emerging tech startups, disruptive platforms.
Profitable companies growing 15-25% annually. Balance of growth and stability. Examples: established tech, healthcare innovators, consumer brands.
Growing 10-20% with attractive valuations (PEG under 1.5). Blend of growth and value. Examples: mature growth companies with steady expansion.
Even great companies can be bad investments at the wrong price. Watch PEG ratios.
Prefer recurring revenue, high retention, and organic growth over one-time sales.
Don't put all eggs in one basket. Spread across tech, healthcare, consumer, etc.
Growth stocks swing wildly. Stay focused on long-term fundamentals, not daily prices.
Watch for signs of slowing growth, market share loss, or increased competition.
See today's highest-scoring growth stocks with strong revenue and earnings expansion.
View Today's Growth Stocks