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Definition: This is the rate at which a company, economy, earnings, etc. is currently growing at or expected to grow at.
TeenAnalyst Advice: As investors, we typically look for companies that are growing quickly. Companies with rapidly growing earnings are called "growth stocks."
Stocks of companies that aren't growing rapidly could still be lucrative investments. "Value stocks" are stocks that are currently undervalued. Even though the company may not be achieving high growth rates, its low stock price might make it an attractive buy.
In some years, value stocks outperform growth stocks. They're also less prone to market downturns.
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