Growth Rating

What Is Growth Rating?

A long-term signal that ranks stocks by the likelihood they will experience revenue and/or size expansion over the next one to two years. As Wall St. is addicted to growth, a higher number is a great indicator of success.

How to use Growth Rating?

Growth rating ranges from 0 to 100 and can be examined for a certain stock or an aggregation of stocks such as ETFs.

A high Growth rating (80+) predicts strong revenue and size expansion over the next one to two years.

A low Growth rating (20 or less) predicts stagnant growth or decline over the next one to two years.

Investing in high-growth companies for longer time horizons can be lucrative but if paired with low Profitability, especially in Bear markets, those gains could quickly turn into losses. 

It is essential to consider the hype surrounding growth stocks and determine how much future growth is already priced into the stock. 

Update Frequency and Usage for Growth Rating

Growth Rating can update as much as a few times per day, depending on analyst behavior. A big move in this number is great if it is going up or potentially very bad if it is going down, so you’ll want to keep an eye on this number.

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