What indicates growth or a value stock?

The main difference between value and growth stocks is perception among investors.

Value investors will search for stocks that they think are undervalued by the market. Growth investors will find stocks that they believe will post better-than-average returns.

In today's financial market, the most common growth stocks you will see are:

• Facebook (FB)
• Alphabet (GOOGL)
• Netflix (NFLX)
• Tesla Motors (TSLA)
• Amazon (AMZN)

The most common value stocks you will come across are:

• Procter & Gamble (PG)
• Johnson & Johnson (JNJ)
• Berkshire Hathaway (BRK.B)
• JPMorgan Chase (JPM)
• Pfizer (PFE)

Put simply, growth stocks outperform the overall market, and value stocks are trading below what they are worth in the equities arena.