Identification And Characteristic Induction Of Growth Stock

With the increasing number of stocks,the investment difficulty faced by investors has gradually increased.How to correctly identify growth stocks in the GEM investment has become the primary concern of mid-and long-term investors.Especially in the context of the "high price-earnings ratio" and "high market price" of the GEM,the selection and feature identification of growth stocks has important practical significance.This paper sorts out the literature on the selection of growth stocks at home and abroad,and finds that although the growth stocks are the focus of investors,there are few related literature studies.According to the definition of a growth company,this paper starts from the relationship between growth companies and growth stocks,and defines growth stocks as stocks that have maintained good momentum in all aspects within 3 to 5 years and still have great potential in the future.In this paper,all the samples of ST.*ST,delisted and incomplete data disclosure in gem are removed,and all the listed companies from 2009 to 2014 are taken as the research objects.Considering the availability of data and the requirement of growth evaluation for the study time frame,This paper chose the study period for five years,the research range set at 2013 to 2017.Finally,this paper selects the company's operating capacity,profitability,solvency,innovation and other 16 indicators that affect the growth of the company to establish a growth evaluation system.In order to correctly identify the growth stocks,this paper firstly analyzes the cross-sectional factors for the five-year data respectively.Using the Topsis method to establish an evaluation system for the comprehensive factor score matrix,the closeness is obtained according to the distance between each sample score and the optimal solution.This is the growth score value.Finally,the growth scores are ranked from large to small.The higher the growth score,the higher the stock growth,and the higher growth stocks are selected.The results show that the growth score of GEM stocks is between 0.41 and 0.85,of which only 5 are scored above 0.8,and the overall growth difference between stocks is not large,and there is no extremely high or very low situation.Based on the results of the growth score,the stocks with high growth scores are defined as high growth stocks.According to the selected high-growth stocks and low-growth stocks,the basic characteristics of the stock are summarized.Through descriptive analysis and single factor variance analysis,the indexes of significant difference between high growth stocks and low growth stocks were found out.It is found that the stocks with different growth performance are different in terms of industry classification and issuing time,among which high-tech industries and industries supported by national policies tend to have higher growth.The issuing time of high growth stocks is later than that of low growth stocks.In addition,high-growth stocks tend to have a lower p/e ratio,and stocks in the market value is higher than low growth stocks.Moreover,there are significant differences between the two types of stocks in earnings per share,growth rate of earnings per share,growth rate of main business income,growth rate of net profit and return rate of net assets,etc.,and the performance of high growth stocks in the above financial indicators is better than that of low growth stocks.