Growth Companies – High Growth Potential Stocks
Growth companies are businesses whose revenue and earnings grow faster than the market. Investors look to growth companies primarily for capital appreciation over the long term.
Growth investing suits investors who accept greater price volatility in exchange for higher return potential. Register for free and build your own growth portfolio.
Featured growth companies
Qt Group Oyj
€19.24
+0.47%
TietoEVRY Corporation
€19.17
+1.00%
Metso Oyj
€15.09
-1.44%
Ericsson, Telefonab. L M ser. B
SEK 107.80
-0.46%
Volvo, AB ser. B
SEK 308.60
-1.94%
NVIDIA Corporation
$177.39
+0.93%
Microsoft Corporation
$373.46
+1.11%
Amazon.com, Inc.
$209.77
-0.38%
Alphabet Inc.
$295.77
-0.54%
Meta Platforms, Inc.
$574.46
-0.82%
Tesla, Inc.
$360.59
-5.42%
What is a growth company?
A growth company invests heavily in expanding its business rather than distributing profits as dividends. The goal is to grow market share, develop new products and increase future earnings potential.
- •Rapid revenue growth
- •High earnings growth expectations
- •Often little or no dividend
- •Greater price volatility
Benefits of growth investing
- •High return potential over the long term
- •Opportunity to benefit from mega-trends such as digitalisation and the green transition
- •Innovation-based competitive advantage
Many technology and healthcare companies are traditionally growth companies. Explore different sectors on the sector page.
Risks of growth companies
Higher return potential also means higher risk. Growth company valuations can be high, meaning even a small earnings disappointment can lead to a sharp share price fall.
- •High valuation multiples (P/E, P/S)
- •Dependence on future growth
- •Sensitivity to market sentiment
Where to find growth companies?
Growth companies can be found in both domestic and international markets:
The strongest growth companies are often found in the technology, software, healthcare and renewable energy sectors.
Building a growth portfolio
A good growth portfolio includes several different companies and sectors. Diversification is important because not all growth stories play out as expected.
On Sijoittajatieto.fi you can:
- •Add growth companies to your portfolio
- •Track returns and performance
- •Compare valuation multiples
- •Build watchlists
Create a free account and build your own growth portfolio
Track growth companies, compare valuation multiples and build a diversified growth portfolio — all in one place for free.