High Growth Company

High Growth Company

A company performing better, or expected to perform better, than its industry or the market as a whole. Companies generating a return on equity of greater than 15% are generally classified as high growth companies. Stocks in these companies usually pay little to nothing in dividends as they reinvest most of their earnings. Some believe that many or most growth companies are overvalued, citing for example the large number of growth companies during the dotcom bubble.
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