Do Growth Stocks Earn More?

Do Growth Stocks Earn More? by Bargain Value

[schloss]

In last few articles we checked: P/S, P/BV and ROCE indicators. Now it’s time for a growth one. Today we will take a look at operating profit (EBIT) dynamic. It is said that stocks with high EBIT growth, outperforms these with low (or even negative). Let’s check if it’s true.

The methodology will be the same as always, so for more info you can find the exact description in article with first test.

As always we will divide stocks into 10 group. Group nr. 1 has the top 10% of stocks according to EBIT dynamic rank (extremly high growers). Group nr. 10 has the bottom 10% of stocks (profits are decreseng...