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Finding stocks

How to find growth stocks

Growth stocks increase sales and profits faster than the market. Screen for steady revenue and earnings growth, check that the growth makes money, and do not pay any price for it.

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What real growth looks like

Look for revenue that has grown year after year, not one lucky year, and for profit and free cash flow that grow with it. Growth bought with ever more debt or new shares (dilution) is worth less to the shareholder.

The price of growth

Fast-growing companies often have high price ratios. A PEG ratio (P/E divided by the growth rate) around 1-2 means you are not paying an extreme price for the growth; a very high P/E leaves no room for disappointment, and growth shares fall hard when growth slows.

Using the screener

The Growth profile shows profitable companies whose revenue grew 10-20 % and earnings per share at least 10 % in a year, with a P/E below 60. Compare each with its industry - growth that beats the peers is worth more.

Try it in the screener

The Growth profile shows companies that are growing fast. It is a learning example, not a recommendation.

Show growth stocks

This content is general information, not investment advice.