Growth stocks give long-term investors the opportunity to outperform benchmarks like the S&P 500 and the Nasdaq Composite. While some investors believe you have to search for obscure companies to outperform the indices, you can look within any index to find outperforming stocks.
Past results aren’t enough to gauge if a stock will continue to outperform the broader market. It’s important to look at a company’s financials to determine if revenue and profit margins are expanding. Also, investors should consider each company’s catalysts and risks.
This post appeared first on InvestorPlace.