The G-Score framework, developed by Professor Partha Mohanram in 2005, offers investors a systematic approach to evaluating growth stocks. Functioning as a counterpart to Joseph Piotroski’s F-Score system for value investments, this analytical tool examines eight critical financial indicators specifically tailored to growth-oriented companies.
At its core, the G-Score measures how effectively companies invest in future growth through research and development, capital expenditures, and advertising. It also analyzes profitability metrics including return on assets and operational cash flow. Companies earn one point for each positive indicator, with total scores ranging from zero to eight. Higher scores generally signal stronger growth potential.
What distinguishes the G-Score is its emphasis on sustainable rather than merely rapid growth. Mohanram’s testing revealed that investors could achieve market-beating returns by purchasing high G-Score stocks while shorting those with low scores. This approach helps identify companies with durable competitive advantages, separating them from businesses experiencing temporary success or facing intense competitive pressures.
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 April 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 | $166.28 | $13,130 | 19.0 | 1.5 | 46 | 5.7 | 12.9 | 2.1% | 8 |
| DECK | DECKERS OUTDOOR CORP | $106.13 | $16,108 | 17.2 | 3.3 | 43 | 6.1 | 16.0 | 0.0% | 8 |
| STAA | STAAR SURGICAL CO | $16.14 | $796 | 31.4 | 2.5 | 19 | 2.0 | 10.5 | 0.0% | 8 |
| TTC | TORO CO | $64.33 | $6,421 | 16.4 | 1.4 | 44 | 4.4 | 12.0 | 2.3% | 8 |
| AMZN | AMAZON.COM INC | $175.26 | $1,857,358 | 31.7 | 2.9 | 61 | 6.5 | 16.6 | 0.0% | 8 |
| SKX | SKECHERS USA INC | $48.21 | $7,200 | 11.6 | 0.8 | 51 | 1.7 | 7.7 | 0.0% | 8 |
| LII | LENNOX INTERNATIONAL INC | $524.25 | $18,653 | 23.3 | 3.5 | 77 | 22.0 | 20.7 | 0.9% | 8 |
| EXEL | EXELIXIS INC | $34.84 | $9,751 | 19.7 | 4.5 | 91 | 4.4 | 17.7 | 0.0% | 8 |
| BIDU | BAIDU INC (ADR) | $79.76 | $27,419 | 8.8 | 1.5 | 45 | 0.8 | 6.5 | 0.0% | 8 |
| GRMN | GARMIN LTD | $180.86 | $34,798 | 24.8 | 5.5 | 85 | 4.4 | 21.9 | 1.7% | 8 |
Further Research
