Growth investing is a matter of expectations.
Growth stocks seldom seem cheap. But a growth investor reasons that what appears precious at 25 times the current year's earnings will look cheap at today's price a year or two from now. Value stocks are underpriced bargains. They are out of vogue, overlooked, disliked, cheap stocks that investors, institutions and analysts have given up on. Value stocks are plentiful in cyclical industries, such as metals, and in financials, such as banks.