Growth Stocks vs. Value Stocks - Key Differences
Growth stocks and value stocks are two primary styles of investing in equities. 📎 Growth Stocks Characteristics: • High revenue and profit growth rates (often above market averages). • Companies may reinvest profits into development rather than paying dividends. • High multiples (P/E, P/S), as investors pay for future potential. • More commonly found in the technology sector (e.g., Tesla, Nvidia, Amazon in the past). 💻 Value Stocks Characteristics: • Low multiples (P/E, P/B) relative to the market or historical values...