Three common ways investors informally group stocks by how they expect to make money from them.
Stocks priced cheaply relative to current earnings or book value (low P/E, low P/B) — the market isn't pricing in much future growth, for better or worse. The return thesis is that the price will re-rate upward once the market recognizes the business is worth more than it's currently priced for (or is simply wrong to be pessimistic).
Stocks priced at a premium (high P/E, high P/S) because the market expects earnings or revenue to expand rapidly. The return thesis depends on that growth actually showing up — if it slows down, a growth stock's premium valuation can compress hard.
Stocks bought partly or mostly for their cash income (dividend yield) rather than price appreciation — typically mature, stable-cash-flow businesses that don't need to reinvest every dollar of profit back into the business.
These are loose, overlapping labels, not official categories — a stock can be cheap AND pay a solid dividend AND still be growing. This site's Health Score doesn't sort companies into these buckets; it scores value and quality factors directly and lets you see where any individual stock lands on each dimension.
What is the P/E ratio? What is dividend yield? What is diversification, really?
Not investment advice. ← All investing terms · Screen stocks yourself →