Growth Stocks

Growth stocks are shares in companies that are anticipated to grow at an above-average rate compared to their industry or the overall market. These companies typically reinvest their earnings into expansion, research and development, or other initiatives instead of paying dividends to shareholders. Investors are drawn to growth stocks for their potential for significant capital appreciation. These stocks are often characterized by high price-to-earnings (P/E) ratios, as investors are willing to pay a premium for the expected future growth. Growth stocks can include companies in various sectors, such as technology, healthcare, and consumer goods, and are often perceived as riskier investments compared to value stocks, as they can be more volatile and sensitive to changes in market sentiment.