Market share is also an important attribute. The biggest players always have more control over the pricing of their products. Second-tier competitors end up having their prices set by the leaders, an unfavorable position to be in. The pressure to show strong revenues and profits leads companies into aggressive bookkeeping. That can work for a while.
Investors can protect themselves somewhat against such surprises.
If they are, the company may be lending customers money to keep up sales. If the borrowers default or go bankrupt, the debt may never be repaid. If a company's earnings prospects are truly great, it should perform better than the stock market and its industry peers. But if the market is moving up, and your growth stock is lagging behind, it could be a sign of trouble. DEBT Debt can kill a growth company if its sales slow so much that it can't make interest payments.