Growth Stocks

Growth stocks are stocks of companies expected to grow revenue or earnings faster than average. In simple terms, growth stocks are companies investors buy because they expect strong future growth. Growth stocks are important because they can produce large gains if the company grows as expected. However, they can also be sensitive to interest rates and investor expectations because much of their value depends on future growth. For example, a fast-growing technology company may be considered a growth stock. Growth stocks are not always profitable today. Investors may still value them highly if they believe future growth will be strong.