Growth Stocks: Separating the Winners From the Losers

By Daniel Sparks – Apr 23, 2013 at 10:46AM

NASDAQ: WFM

Whole Foods Market, Inc.

Growth investing is a tough game. How do you differentiate a growth stock from an overvalued stock?

Growth investing relies on a simple premise: Find great companies that will outperform over the long haul, outgrowing their premium valuations over time. This, of course, is easier said than done. In the video below, Fool contributor Daniel Sparks discusses a great way to tell the gold from the fool's gold. To illustrate, he takes a look at Whole Foods Market (WFM) and Panera Bread (PNRA).

Fool contributor Daniel Sparks has no position in any stocks mentioned. The Motley Fool recommends Panera Bread and Whole Foods Market. The Motley Fool owns shares of Panera Bread and Whole Foods Market. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.