Supernormal Growth Stock

DEFINITION of 'Supernormal Growth Stock'

A security that experiences particularly robust growth over an extended period of time. A supernormal growth stock is one that significantly outperforms the market and provides investors with returns that are well above average. In nearly all cases, these stocks only maintain their accelerated growth for a limited time before coming back down to Earth.

BREAKING DOWN 'Supernormal Growth Stock'

Many of the most successful companies in history have experienced supernormal growth at some point in their existence. Specifically, during the early years, future blue-chippers often show appreciation well above the broader market averages, sometimes lasting for several years. Of course, the reason for this growth can usually be attributed to a new product, business model or service.

Trading Center