The Starting Point for Growth Investing
For any growth stock, begin with revenue expansion. Without strong top-line growth, the growth label simply doesn't apply. Growth companies typically deliver 20% to 40% annual sales increases or more โ clear evidence of rising demand.
Revenue Alone Isn't Enough
Revenue confirms demand exists, but it doesn't explain whether the business is built to last. Investors must also assess:
๐ Profit margins
๐ Business model
๐ง Competitive advantages
๐ Market position
Revenue growth identifies candidates. Understanding why that growth is happening โ and whether it's sustainable โ is what separates great investments from the rest.