1 Key Ratio All Investors Should Be Looking at When Buying Growth Stocks in 2022
Growth stocks are struggling of late and many of them are on sale. In just three months, the ARK Innovation ETF has fallen more than 23% while the S&P 500 has risen by 8%. It can be tempting to buy up many growth stocks right now given their depressed valuations, but knowing which ones are likely to be safe in a year that may be filled with interest rate hikes could be the difference between a good return and a bad one.
Luckily, ratios can help investors put into context a company's valuation and risk. And there's a particularly important one that investors should focus on this year when buying growth stocks.
Image source: Getty Images.
Source Fool.com
