In the ever-changing landscape of financial markets, sophisticated investors seek reliable methodologies to identify genuine growth opportunities. The G-Score framework, pioneered by Professor Partha Mohanram in 2005, offers a disciplined analytical approach for evaluating growth-oriented companies, functioning as a strategic counterpart to Joseph Piotroski’s F-Score system for value investments.
At its foundation, the G-Score examines eight critical financial indicators specifically designed for growth companies. This methodology measures how effectively organizations invest in future expansion through research and development initiatives, strategic capital expenditures, and market development activities. Simultaneously, it analyzes key profitability metrics including return on assets and operational cash flow strength. Companies receive one point for each positive indicator, with total scores ranging from zero to eight—higher scores generally signaling stronger growth potential.
What truly distinguishes the G-Score is its emphasis on sustainable rather than merely rapid growth. The framework helps investors differentiate between companies with durable competitive advantages and those experiencing temporary success or facing intensifying market pressures. Mohanram’s rigorous testing demonstrated that portfolios constructed around high G-Score companies while shorting low-scoring counterparts have consistently delivered market-beating returns across various economic cycles, providing a valuable compass for growth-focused investment strategies.
Get the highest scoring G Score stocks every day, plus access to over 20 other proven quantitative models. Visit Validea.com to access in-depth stock analysis and tools based on proven investment principles. Start a Free Trial!
Here are Validea’s top 10 G Score stocks for May 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 | $170.93 | $13,363 | 19.7 | 1.5 | 41 | 6.2 | 13.2 | 2.1% | 8 |
| BCPC | BALCHEM CORP | $162.74 | $5,308 | 39.1 | 5.5 | 68 | 4.4 | 29.2 | 0.5% | 8 |
| PKX | POSCO HOLDINGS INC (ADR) | $46.46 | $14,792 | 18.3 | 0.3 | 31 | 0.4 | 4.1 | 0.0% | 8 |
| PLPC | PREFORMED LINE PRODUCTS CO | $132.31 | $654 | 16.8 | 1.1 | 64 | 1.5 | 10.7 | 0.6% | 7 |
| PLTK | PLAYTIKA HOLDING CORP | $5.37 | $2,016 | 12.3 | 0.8 | 36 | 6.2 | 7.5% | 7 | |
| PBH | PRESTIGE CONSUMER HEALTHCARE INC | $82.98 | $4,111 | 19.4 | 3.7 | 76 | 2.3 | 16.8 | 0.0% | 7 |
| NEU | NEWMARKET CORP | $625.99 | $5,906 | 12.5 | 2.1 | 73 | 3.9 | 9.8 | 1.6% | 7 |
| NOW | SERVICENOW INC | $978.05 | $202,456 | 132.9 | 17.7 | 84 | 20.0 | 95.0 | 0.0% | 7 |
| NSA | NATIONAL STORAGE AFFILIATES TRUST | $37.78 | $2,888 | 33.1 | 3.8 | 65 | 4.2 | 7.5 | 7 | |
| NSIT | INSIGHT ENTERPRISES INC | $133.68 | $4,268 | 26.8 | 0.5 | 36 | 2.7 | 14.6 | 0.0% | 7 |
Further Research
