TY - JOUR T1 - Redefining Growth: Using Analyst Forecasts to Transcend the Value–Growth Dichotomy (Part 1) JF - The Journal of Beta Investment Strategies DO - 10.3905/jbis.2022.1.019 SP - jbis.2022.1.019 AU - Ross French Y1 - 2022/10/26 UR - https://pm-research.com/content/early/2022/10/26/jbis.2022.1.019.abstract N2 - Asset pricing literature typically labels stocks with high price multiples as growth and stocks with low price multiples as value. This definition is accompanied by the view that, over the long term, value outperforms growth and encourages investors to make a binary choice between the two styles. In this first of two articles, we seek to find an alternative definition of growth and, to this end, evaluate the efficacy of a range of metrics at predicting future earnings growth. We conclude that analysts’ forecasts have a stronger relationship with future earnings growth than price multiples do. In addition to this main observation, we find that profitability and historical earnings growth have a negative relationship with future earnings growth, thus challenging the notion that these metrics are useful for identifying growth stocks. ER -