We recently curated a list of 11 High-Risk High-Reward Growth Stocks To Buy Now. Here, we take a detailed look at BrightSpring Health Services, Inc. (NASDAQ:BTSG) and its ranking among the top picks.
The stock market has an ever-changing environment, leaving investors constantly looking for opportunities that promise substantial returns for their investments. Gaining a consistent placement in the portfolio of such investors is a growth stock. These growth stocks have historically been highly valued among investors seeking high investment returns. However, another essential characteristic of a growth stock is the risk proportional to its level of return. In other words, growth stocks may deliver significant capital appreciation but have heightened volatility.
Changes often influence the volatility of growth stocks in market conditions. In this regard, the U.S. market conditions underwent many changes soon after the new U.S. president entered the Oval Office. The new tariffs brought into practice have created tension between the U.S. and its neighboring countries, including Mexico and Canada. CNBC has reported that owing to the change in tariffs, the price of many commodities, including cars, has risen. It heavily impacted the U.S. stock market. Even the tech industry, which garnered high expectations, saw a decline since the beginning of 2025, though investors still regard many companies in the industry as worthy investments.
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While investors fear a potential rise in inflation and recession in the following months, some growth stocks are performing better while accumulating a high risk level. Compared to other stocks, their performance must be considered before deciding to welcome these stocks into the portfolio.
During the past decade, growth stocks have significantly outperformed their value counterparts. A report by Vanguard stated that during the last 10 years, the U.S. growth stocks have performed better than the U.S. value stocks by an average of 7.8% per year. The upward trend increases the attractiveness of growth stocks for those seeking high returns.
On the other hand, stock markets can be cyclical, with growth and value stocks shifting their leadership roles in the market. The cyclical nature suggests that growth stocks may enjoy periods of dominance, but they are not to be mistaken as immune to market rotations, which may favor value stocks.
A proper approach is necessary when investing in high-risk, high-reward growth stocks. The growth stocks may either belong to companies in emerging industries or be in possession of innovative products or services that could quickly attract the market. Though investors may be attracted to the stocks’ potential for substantial gains, they also need to be cautious of the associated risks, and hence, the approach should involve thorough research and a well-considered investment strategy.
