This Growth Stock Has Market-Beating Potential
For most investors, the goal should be to -- at a minimum -- having your stock portfolio keep up with the market average. When people refer to "the market," they generally mean the S&P 500, an index that tracks the largest 500 companies trading on the U.S. stock market.
Growth stocks have the potential to significantly outpace the market average, which is ideal. If you're looking for a growth stock that can beat the market, the Vanguard Growth ETF (NYSEMKT: VUG) can do the trick. It might not be an individual company, but it's still equipped with market-beating potential that investors can't go wrong with.
Growth stocks have the potential to produce great returns, but this doesn't come without some drawbacks. They are often more volatile and unpredictable than value or older dividend stocks. If you can keep a long-term mindset and not react too much to short-term price fluctuations, perfect; if you can't do that, individual growth stocks might not be the best option for your stress levels.
Source Fool.com
