The investment landscape is in constant flux, requiring sophisticated tools to identify genuine growth opportunities. In 2005, Professor Partha Mohanram developed the G-Score methodology as a structured approach to evaluating growth companies, designed to complement Joseph Piotroski’s F-Score system for value-based investing.
This framework analyzes eight specific financial indicators designed for growth-oriented enterprises. It measures how effectively companies allocate resources toward future expansion through research and development, capital investments, and market development initiatives. The system also incorporates critical profitability metrics such as return on assets and cash flow generation. Companies receive one point for each favorable metric, resulting in a scale from zero to eight points, where higher scores generally suggest stronger growth potential.
What sets the G-Score apart is its focus on durable rather than merely rapid growth. The framework enables investors to differentiate between companies with enduring competitive advantages and those experiencing temporary success or increasing competitive pressure. Mohanram’s studies demonstrated that portfolios constructed using high G-Score companies while shorting low-scoring ones have consistently delivered superior returns compared to market benchmarks across various economic cycles. This positions the G-Score as a valuable instrument for growth-focused investment strategies.
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Here are Validea’s top 10 G Score stocks for July of 2025.
| Ticker | Company Name | Price | Market Cap ($mil) | PE Ratio | Price/ Sales | Relative Strength | Price/ Book | Price/ Cash Flow | Dividend Yield | Mohanram G Score |
|---|---|---|---|---|---|---|---|---|---|---|
| AVY | AVERY DENNISON CORP | $180.30 | $14,095 | 20.7 | 1.6 | 38 | 6.5 | 13.9 | 2.0% | 8 |
| BCPC | BALCHEM CORP | $162.53 | $5,301 | 39.0 | 5.5 | 55 | 4.4 | 29.2 | 0.5% | 8 |
| ALG | ALAMO GROUP INC | $225.19 | $2,723 | 23.5 | 1.7 | 79 | 2.6 | 16.1 | 0.5% | 7 |
| SSD | SIMPSON MANUFACTURING CO INC | $159.46 | $6,670 | 20.8 | 3.0 | 49 | 3.6 | 16.3 | 0.7% | 7 |
| SKYW | SKYWEST INC | $107.46 | $4,349 | 12.3 | 1.2 | 77 | 1.8 | 5.9 | 0.0% | 7 |
| AZO | AUTOZONE INC | $3,790.64 | $63,413 | 25.6 | 3.4 | 78 | 20.1 | 0.0% | 7 | |
| CRUS | CIRRUS LOGIC INC | $106.16 | $5,446 | 17.7 | 2.9 | 37 | 2.9 | 14.2 | 0.0% | 7 |
| MAT | MATTEL INC | $20.00 | $6,458 | 12.9 | 1.2 | 72 | 3.0 | 9.7 | 0.0% | 7 |
| CSGS | CSG SYSTEMS INTERNATIONAL INC | $65.60 | $1,901 | 22.5 | 1.6 | 87 | 6.7 | 12.0 | 1.9% | 7 |
| DECK | DECKERS OUTDOOR CORP | $105.75 | $15,803 | 16.7 | 3.2 | 29 | 6.3 | 15.3 | 0.0% | 7 |
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