A Contrarian Strategy For Growth Stock Investing: Theoretical Foundations And Empirical Evidence

A Contrarian Strategy for Growth Stock Investing: Theoretical Foundations and Empirical Evidence

Relatively few academics or practitioners have systematically explored growth stocks. Growth stocks usually involve exciting companies whose sales and earnings are growing significantly faster than other companies and the economy in general. This book finds that high expectation growth stocks or the ones that everyone loves have poor relative returns. Low expectation growth stocks, however, have strong performance. The author uses the PE/GROWTH ratio to rank the market's expectations for these stocks.