How to Find the Best Growth Stocks

Growth stocks can create significant returns for investors, but what are they and how do you find the best ones? We take a closer look here.

financial chart on blue background with different colored tape and red tape breaking above the top
(Image credit: Getty Images)

The concept of "growth" vs "value" is one that's ingrained in most investors' minds. The best growth stocks are those exciting businesses whose revenue is expanding at a seemingly exponential pace, whereas value stocks are those that have steady, reliable growth. 

The question rookie investors should ask themselves isn't which style is better, but rather why each style matters. Perhaps more importantly, folks should be researching how to successfully integrate them into their overall investment strategy. 

In recent years, the advent of the exchange-traded fund (ETF) has made it much easier to invest in both growth and value stocks. 

For example, BlackRock offers both the iShares S&P 500 Growth ETF (IVW) and the iShares S&P 500 Value ETF (IVE), which gives you a tiny slice of exposure to hundreds of stocks in each category – all for pennies on the dollar. 

But this article isn't about finding the best ETFs to buy, rather it's one about how to find the best growth stocks to buy, so put these funds aside. We'll revisit them later in the story.      

For now, let's consider what defines growth stocks.

Will Ashworth
Contributing Writer,

Will has written professionally for investment and finance publications in both the U.S. and Canada since 2004. A native of Toronto, Canada, his sole objective is to help people become better and more informed investors. Fascinated by how companies make money, he's a keen student of business history. Married and now living in Halifax, Nova Scotia, he's also got an interest in equity and debt crowdfunding.