Additionally, supply chain constraints have impacted the ability of some to scale, while other macroeconomic factors impact the entire economy. High inflation has put pressure on growth stocks since it reduces the future value of their expected earnings. That said, growth stocks have taken a beating in the market in 2022.

Unlike value stocks, high-growth stocks tend to be more expensive than the average stock in terms of profitability ratios such as price-to-earnings, price-to-sales, and price-to-free-cash-flow ratios.Дespite their premium price tags, the best growth stocks can still deliver fortune-creating returns to investors as they fulfill their awesome growth potential. And, the faster they grow, the bigger the returns can be. Often, a growth company has developed an innovative product or service that is gaining share in existing markets, entering new markets, or even creating entirely new industries.Д«usinesses that can grow faster than average for long periods tend to be rewarded by the market, delivering handsome returns to shareholders in the process. Growth investing, however, involves more than picking stocks that are going up. Growth stocks are companies that increase their revenue and earnings at a faster rate than the average business in their industry or the market as a whole.

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