What exactly are growth stocks?

Growth stocks are shares in companies that are expected to increase in value at an above-average rate compared to other companies. Unlike dividend stocks that pay regular income to investors, growth companies typically reinvest their profits back into the business to fuel expansion, research, and development. This strategy aims to increase the company's value over time, potentially resulting in a higher stock price.

Why do growth stocks focus on reinvesting profits?

Growth companies reinvest profits to develop new products, expand into new markets, improve their technology, or acquire other businesses. This strategy is designed to increase their revenue and market share faster than competitors. While this means fewer dividends for shareholders in the short term, the goal is to create much greater value in the future when successful innovation leads to higher profits and share prices.

What does "Analyst Rating" tell me about these stocks?

Analyst Ratings are professional opinions from financial experts who study these companies closely. These ratings typically range from "Strong Buy" to "Strong Sell" and reflect how confident analysts are about a stock's future performance. A positive rating suggests experts believe the stock has good growth potential based on factors like the company's business model, market position, and financial health.

What is "Target Price" and why does it matter?

Target Price is what financial analysts predict a stock will be worth within a specific time period (usually 12 months). It represents their best estimate of the stock's future value based on company performance, industry trends, and overall market conditions. The difference between the current price and the target price can help you understand how much growth potential analysts see in a stock.

7 handpicked stocks

High Growth Stocks

These carefully selected companies are predicted to grow significantly faster than average. Our professional analysts have identified these stocks for their strong innovation focus and potential to deliver exceptional returns.

Han Tan | Market Analyst

Updated 2 days ago | Published at मई 5