There are no set guides to what a trader can look for but a company that is having a twenty percent growth a year is outstanding. Another definition of a growth stock is that investors want to see earning increase each quarter. Traders want to see consistent earnings growth over each quarter. Remember not ever quarter is going to show some growth. Growth stocks at the end of the year will show a ever increasing growth of income.
Many investors that invest in growth stocks will use a price earning multiple. They might compare two companies that produce the same product and compare which company is growing more. If the two companies show about the same P&E then they might not be the ones to buy stock in. Many growth stocks like Wall-mart, Coke-Cola are great examples of growth stocks. Many stocks have proven there worth and have made money for there investors. The best way is to compare companies using a stock screener is set the screener for five to ten percent returns each quarter.