What is growth investing? It requires focusing on companies outperforming peers in sales growth. As per June market data, luxury brand revenues rose 14% YoY, outperforming the consumer discretionary sector, signaling investor appetite for premium growth plays. Say, for example, if a stock's P/E ratio is 10 and the expected long-term growth rate is 15%, the company's PEG will come down to 0.66, a ratio indicating both undervaluation and future growth potential. Instead of paying dividends, these companies often reinvest their earnings back into the business to fuel future growth. This approach is especially popular in sectors like technology and healthcare, where rapid innovation and changing market demands can lead to substantial financial rewards. What is growth investing? It leverages future-focused financial modeling. Analysts project clean hydrogen production will achieve a 26% CAGR through 2030, positioning related equities for sustained valuation premiums in long-term growth portfolios.
