What Is a Growth Stock?
A growth stock is a share in a company expected to increase its revenue or earnings faster than the overall market. Growth companies often reinvest profits instead of paying dividends and tend to trade at higher price-to-earnings ratios, which can make their prices more sensitive to changes in expectations.
Growth vs. Value
Growth investing focuses on future expansion; value investing looks for shares priced low relative to measures such as earnings or book value.
Volatility
Because much of their value depends on future results, growth stocks can move sharply when outlooks change.
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Last updated: September 29, 2026. This definition is for general educational purposes only. It is not financial, investment, tax, legal, or medical advice, and it does not recommend any product or course of action. For decisions about your own situation, consult a qualified professional.