The stocks that grow significantly above the market average are termed as growth stocks. They include stocks of many technologies, biotechnology, and consumer companies. These companies have products or product lines that are expected to do very well in the future and better than competitors.
The important characteristic of growth stocks is that they reinvest all of their earnings into the growth of the company and do not pay out any dividends. Therefore, investors who invest in growth stocks only receive long-term capital gains and no regular short-term income.
Ticker | Company Name | Last Price | 1-Year Return | Market Cap |
|---|---|---|---|---|
| ABCB | Ameris Bancorp | $53.20 | 18.78% | 3.7B |
| ABMD | Abiomed, Inc. | #N/A | #N/A | #N/A |
| ACBI | Atlantic Capital Bancshares, Inc. | #N/A | #N/A | #N/A |
| ACIA | Acacia Communications, Inc. | $0.00 | #N/A | 95.9B |
| ALGN | Align Technology, Inc. | $171.41 | -43.12% | 12.5B |
| ALRM | Alarm.com Holdings, Inc. | $50.40 | -21.62% | 2.5B |
| ANET | Arista Networks, Inc. | $71.20 | 10.73% | 89.8B |
| AX | Axos Financial, Inc. | $60.21 | 22.35% | 3.4B |
| BANC | Banc of California, Inc. | $13.21 | -4.28% | 2.1B |
| CGNX | Cognex Corporation | $23.77 | -38.56% | 4.0B |
| COOP | Mr. Cooper Group Inc. | $111.21 | 46.77% | 7.1B |
| CORT | Corcept Therapeutics Incorporated | $62.24 | 174.67% | 6.6B |
| CRM | salesforce.com, inc. | $247.26 | -9.07% | 237.6B |
| CSGP | CoStar Group, Inc. | $79.70 | -5.32% | 33.6B |
| EGBN | Eagle Bancorp, Inc. | $20.29 | -1.12% | 616.2M |
| EGRX | Eagle Pharmaceuticals, Inc. | $1.80 | -59.82% | 23.4M |
| ENTA | Enanta Pharmaceuticals, Inc. | $5.10 | -61.45% | 108.8M |
| EPAM | EPAM Systems, Inc. | $147.16 | -40.47% | 8.3B |
| EVR | Evercore Inc. | $181.28 | -2.16% | 7.1B |
| EXEL | Exelixis, Inc. | $36.19 | 60.92% | 10.1B |
| FB | Facebook, Inc. | $185.26 | #N/A | 1270.6B |
| FIVE | Five Below, Inc. | $67.53 | -55.57% | 3.7B |
| FND | Floor & Decor Holdings, Inc. | $70.31 | -35.84% | 7.6B |
| FTNT | Fortinet, Inc. | $96.13 | 50.13% | 73.9B |
| HOMB | Home Bancshares, Inc. (Conway, AR) | $26.46 | 13.95% | 5.3B |
| HQY | HealthEquity, Inc. | $84.52 | 5.85% | 7.3B |
| INCY | Incyte Corporation | $58.21 | 10.20% | 11.3B |
| INGN | Inogen, Inc. | $6.82 | -3.81% | 183.4M |
| INVA | Innoviva, Inc. | $18.27 | 24.37% | 1.1B |
| KNSL | Kinsale Capital Group, Inc. | $485.70 | 7.47% | 11.3B |
| MEDP | Medpace Holdings, Inc. | $296.28 | -20.85% | 9.0B |
| MRCY | Mercury Systems, Inc. | $47.96 | 69.41% | 2.9B |
| MSBI | Midland States Bancorp, Inc. | $15.71 | -31.13% | 337.7M |
| MU | Micron Technology, Inc. | $68.80 | -38.53% | 76.9B |
| NMIH | NMI Holdings, Inc. | $33.68 | 13.82% | 2.6B |
| NOW | ServiceNow, Inc. | $772.16 | 5.58% | 159.8B |
| NVDA | NVIDIA Corporation | $101.43 | 19.79% | 2474.8B |
| NVEE | NV5 Global, Inc. | $15.82 | -29.28% | 1.0B |
| OZK | Bank OZK | $41.63 | -4.95% | 4.7B |
| PACW | PacWest Bancorp | $8.06 | #N/A | #N/A |
| PAYC | Paycom Software, Inc. | $216.91 | 17.33% | 12.5B |
| PAYS | PaySign, Inc. | $2.16 | -49.41% | 116.1M |
| PCTY | Paylocity Holding Corporation | $183.98 | 16.81% | 10.3B |
| PEN | Penumbra, Inc. | $277.35 | 37.41% | 10.7B |
| PFBC | Preferred Bank | $81.03 | 12.17% | 1.1B |
| PNFP | Pinnacle Financial Partners, Inc. | $95.11 | 21.22% | 7.4B |
| PPBI | Pacific Premier Bancorp, Inc. | $19.25 | -9.67% | 1.9B |
| PRAH | PRA Health Sciences, Inc. | #N/A | #N/A | #N/A |
| PUB | People's Utah Bancorp | $84.84 | -16.04% | 24.6B |
| PXD | Pioneer Natural Resources Company | #N/A | #N/A | #N/A |
| QDEL | Quidel Corporation | $25.17 | -34.21% | 1.7B |
| QLYS | Qualys, Inc. | $120.62 | -25.93% | 4.4B |
| QRVO | Qorvo, Inc. | $57.63 | -46.56% | 5.4B |
| REGN | Regeneron Pharmaceuticals, Inc. | $563.16 | -37.01% | 61.6B |
| SFBS | ServisFirst Bancshares, Inc. | $69.72 | 18.07% | 3.8B |
| SFNC | Simmons First National Corporation | $17.39 | -1.70% | 2.2B |
| SHAK | Shake Shack Inc. | $83.22 | -12.61% | 3.5B |
| SIVB | SVB Financial Group | #N/A | #N/A | #N/A |
| SKX | Skechers U.S.A., Inc. | $47.63 | -16.23% | 7.1B |
| SMBK | SmartFinancial, Inc. | $28.88 | 48.56% | 484.6M |
| SONA | Southern National Bancorp of Virginia, Inc. | $0.27 | -27.03% | 30.2M |
| STL | Sterling Bancorp | #N/A | #N/A | #N/A |
| STMP | Stamps.com Inc. | $0.30 | #N/A | 3.4M |
| TAL | TAL Education Group | $9.80 | -15.88% | 5.9B |
| TBBK | The Bancorp, Inc. | $45.60 | 37.39% | 2.2B |
| TCMD | Tactile Systems Technology, Inc. | $13.33 | -5.73% | 315.5M |
| TPL | Texas Pacific Land Trust | $1,298.64 | 122.98% | 29.8B |
| TSC | TriState Capital Holdings, Inc. | #N/A | #N/A | #N/A |
| ULTA | Ulta Beauty, Inc. | $357.75 | -15.85% | 16.2B |
| VBTX | Veritex Holdings, Inc. | $21.79 | 12.78% | 1.2B |
| VEEV | Veeva Systems Inc. | $215.95 | 8.22% | 35.1B |
| VNDA | Vanda Pharmaceuticals Inc. | $4.33 | -12.88% | 252.5M |
| VNOM | Viper Energy Partners LP | $41.37 | 6.29% | 9.1B |
| VRTX | Vertex Pharmaceuticals Incorporated | $489.10 | 24.30% | 125.7B |
| WAL | Western Alliance Bancorporation | $66.32 | 18.98% | 7.3B |
| XPEL | XPEL, Inc. | $25.84 | -49.97% | 714.5M |
| YELP | Yelp Inc. | $33.06 | -16.11% | 2.1B |
Factors to Consider Before Investing in Growth Stocks
Growth stocks hold very high risk and reward potential for investors. If the product or product line of companies with growth stocks does well, the stocks will generate exceptionally high returns for investors. However, if the product fails due to certain design flaws or lack of demand, the entire investment can be lost. This is augmented by the fact that growth stocks do not pay any dividends; the only returns are the capital gains.
Investors must, therefore, consider the fundamentals of the business before investing in growth stocks. The past performance of the company, its products, and the future pipeline of products must be researched well to understand if the stock holds the potential to outperform the average market.
Additionally, investors should also compare other parameters like return on equity, growth rate, earnings per share, P/E ratio, and debt/equity ratio, with those of the peers and the industry average to get a clear picture.
Which Growth Stocks Should I Buy?
There are many growth stocks to choose from. To make the selection easier for you, we have compiled a list of the top growth stocks. The choice can be made based on the market capitalization of companies, earnings and sales growth in the past years, P/E ratio, etc.
Growth stocks work as excellent investment means for investors looking for long-term growth. They are not suitable for the ones wanting to earn a quick buck. Investing in growth stocks requires a lot of research, knowledge, and patience. Investors must also be willing and capable of taking huge risks as the entire investment may fail if the business does not do well in the future.
