Ask Colin

What do you mean when you say a stock is a "growth" stock?

This is a term used to describe a fast growing company. The most common measure will be growth in earnings per share, though in the Internet boom of the 1990s, many used price to sales per share, forgetting that profits are also important.

I don't use any fundamental scans for growth stocks. However, you could easily use a scan on Earning Per Share growth, using a website like Aspect Financial.

I do use technical scans looking for 52-week new highs. Then I want to see a growth stock chart pattern and a breakout from a consolidation zone. The growth stock pattern is fully described in the mini course on my subscription web site and in my videotape.

Keywords: