emerging growth stock

Also found in: Dictionary, Thesaurus.

Growth Stock

Share in a company performing better, or expected to perform better, than its industry or the market as a whole. Shares generating a return on equity of greater than 15% are generally classified as growth stocks, but not all growth stocks are classified as such. Such stocks usually pay little to nothing dividends as the companies reinvest most of their earnings. Some believe that many or most growth stocks are overvalued, citing for example the large number of growth stocks during the dotcom bubble.

emerging growth stock

The common stock of a relatively young firm that is operating in an industry that has very good growth prospects. Although this kind of stock offers unusually large returns, it is very risky because the expected growth may not occur or the firm may be swamped by the competition.
Keys to spotting a good emerging growth stock

Keep these points in mind:

  1. High percentage of management ownership. If management has a vested interest, its commitment to succeed will be all the stronger.
  2. What stage is the overall industry in?
  3. More important, where is the target stock focusing its efforts within the industry?
  4. What will be the industry leader's reaction to another player?

Steven Flagg, Senior Vice President—Investments, UBS PaineWebber, Mount Kisco, NY
References in periodicals archive ?
NASDAQ: CLUB), a leading owner and operator of health clubs, announced that management will participate in the 4th Annual William Blair Emerging Growth Stock Conference in New York City at the InterContinental Barclay New York Hotel.
Virtusa Corporation (NASDAQ: VRTU), a global IT services company that offers a broad spectrum of business consulting and outsourcing services, today announced its Chief Executive Officer, Kris Canekeratne, and its Chief Financial Officer, Ranjan Kalia, will present at the 2010 William Blair Emerging Growth Stock Conference, being held at the InterContinental Barclay Hotel in New York.
NASDAQ:CHSI)announced today that Richard Bates, President & Chief Operating Officer, and Hai Tran, Chief Financial Officer, are scheduled to present at the William Blair 2010 Emerging Growth Stock Conference on Tuesday, October 5, 2010, at approximately 2:45 p.
NASDAQ: ARUN), a global leader in distributed enterprise network solutions, today announced that Hitesh Sheth, Chief Operating Officer, will be presenting at the William Blair Emerging Growth Stock Conference, a forum for the financial community held in New York, NY.
We are very impressed with China Kangtai Cactus Biotech, and I feel that our team is ready to effectively communicate the true value of the company, and its long-term potential, to the current shareholders as well as to investors in search of that next big emerging growth stock idea," said James J.
com, a media awareness company which operates a customized platform showcasing emerging growth stocks to independent investors.
And in a gamble to find the next Microsoft, the final 10% of Humphrey's portfolio is in emerging growth stocks.
Full browser ?