Broadly speaking, growth stocks are expected to increase revenue and earnings at a faster pace than the rest of the market. They typically don't pay dividends, since their focus is on reinvesting in the business - and in fact, many of Wall Street's favorite growth stocks are not yet profitable.
While growth stocks carry somewhat higher risk compared to their more well-established counterparts, they also offer the potential for outsized capital returns, which is why so many investors continue to include these names in their portfolios.
