What is value growth

One of the most persistent trends over the last decade has been the underperformance of value compared to growth.However, their prices do not always return to their.An investor believes that these stocks are selling at a lower price in relation to earnings or other value measures.Who's ahead right now and what's at stake.Morningstar defines value stocks as those that are less expensive or that are growing at a slower rate than the average stock.

In simple terms, a value investor or fund manager looks for stocks selling at a discount, looking for a bargain.Indeed, over the past 100 years, value has significantly outperformed growth.The idea behind growth investing is to buy the stocks of companies that have the potential for rapid growth in revenues and especially earnings.Value is defined based on low valuations (low price ratios and high dividend yields) and slow growth (low growth rates for earnings, sales, book value, and cash flow).Growth stocks represent companies that have shown solid earning and growth purchased with the idea that they will grow at a rate faster than the overall stock market.