A growth stock is a type of stock that has exhibited faster than average gains in earnings over recent years and is expected to continue showcasing high levels of profit growth. These stocks often come with higher risks but offer potentially greater returns compared to average stocks.
Performance stock, also known as growth stock, refers to equity in companies perceived by investors as having potential for significant value appreciation. These stocks usually either pay small dividends or no dividends at all.
The Price/Book Ratio is a financial metric used to evaluate if a stock is undervalued or overvalued by comparing the stock's market price to its book value per share.
