What is Foolsaurus?   Can Lower-Margin Stocks Be Growth Stocks?
Original post by Michael Wolfe of Demand Media  Growth stocks
are the high draft picks of the investment world. A growth stock
is defined as a company that is expected to have earnings that
are greater than the market at large. Generally, the term is
applied to companies that are relatively new and that have not
yet reached a point in which their rate of expansion will slow,
like some older, more established companies. A company that has
a low profit margin can indeed be a growth stock, although it
won't always be.   Growth Stock  A company can be defined as a
growth stock by investors if the company is expected to have
relatively high earnings in the near future. In addition, many
growth-stock companies are relatively new and are not giving out
dividends because they are instead reinvesting revenues back
into their business as a means of growing it. The term "growth
stock" is relatively subjective in its definition and to which
companies it app