Growth Industry

What is the 'Growth Industry'

The growth industry is the sector of the economy experiencing a higher-than-average growth rate. Growth industries are often associated with new or pioneer industries that did not exist in the past and their growth is related to consumer demand for the new products or services offered by the firms within the industry.

BREAKING DOWN 'Growth Industry'

If companies across an industry exhibit solid earnings and revenue figures, that industry may be showing signs that it is in its growth stage. Growth industries tend to be composed of relatively volatile and risky stocks. Often investors must be willing to accept increased risk in order to take part in the potentially large gains offered by stocks within a particular growth industry.

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RELATED FAQS
  1. How does the risk of investing in the industrial sector compare to the broader market?

    Discover how the risk of investing in the industrial sector compares to the broader market. The industrial sector is highly ... Read Answer >>
  2. What emerging markets are best suited for getting the most exposure to the industrial ...

    Discover which emerging markets are best suited to gain exposure to the industrial sector. China is the largest variable ... Read Answer >>
  3. What growth rate does the financial services sector demonstrate on average?

    Find out what the average annual growth rate in the financial services sector has been, and learn about factors that might ... Read Answer >>
  4. Is the financial services sector appropriate for a growth investor?

    Take a look across the landscape of today's financial services sector, an industry that has historically served growth investors ... Read Answer >>
  5. Is maximizing stock price the same thing as maximizing profit?

    Simply put: yes. A company's stock price will factor in many different variables including the type of industry the firm ... Read Answer >>
  6. What is the difference between an industry and a sector?

    The terms industry and sector are often used interchangeably to describe a group of companies that operate in the same segment ... Read Answer >>
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