T. Rowe Price Growth Stock Fund

Scorecard
4 / 5 Stars
Lipper
5 5 5 5 5
Zacks Investment Research
2 (Buy)
Standard & Poor's
5 / 5 Stars
TheStreet.com
A+ (Buy)

#15 in Large Growth

U.S. News evaluated 466 Large Growth Funds. Our list highlights the top-rated funds for long-term investors based on the ratings of leading fund industry researchers.

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Performance

The fund has returned 37.48 percent over the past year, 17.29 percent over the past three years, 25.26 percent over the past five years, and 8.99 percent over the past decade.

Trailing Returns Updated 02.28.2014
Year to date 3.6%
1 Year 37.5%
3 Years (Annualized) 17.3%
5 Years (Annualized) 25.3%
10 Years (Annualized) 9.0%

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Summary

Since 1950, the T. Rowe Price Growth Stock Fund has invested in fast-growing companies that its managers believe will outpace the growth of the economy and inflation. The fund, which got a new manager in 2007, has seen its share of bumps in the road, but as of the end of March it had achieved an annualized 10 percent return since its inception.

As of March 05, 2014, the fund has assets totaling $40.59 billion. Its portfolio primarily consists of investments in growth-oriented large-cap companies with some holdings outside of the United States.

Recently, the fund’s manager, Rob Bartolo, has been investing in household tech names. He says companies like Apple and Google have the inventiveness to continue to remain strong in their sectors. Believing that retail sales will increasing come from outside of traditional stores, Bartolo also holds a stake in online-giant Amazon. Apple and Google make up large stakes as well. The fund has returned 37.48 percent over the past year and 17.29 percent over the past three years.

Broadly, Bartolo invests in companies he believes will meet or exceed earnings expectations in a variety of sectors. He says management looks for double-digit earnings gains that are outpacing the market and firms that maintain “some sort of competitive advantage.” The fund has returned 25.26 percent over the past five years and 8.99 percent over the past decade.

Investment Strategy

Investment strategy: According to the fund’s prospectus: “We generally look for companies with an above-average rate of earnings growth and a lucrative niche in the economy that gives them the ability to sustain earnings momentum even during times of slow economic growth.”

Role in Portfolio

Morningstar considers T. Rowe Price Growth Stock a “core” fund.

Management

The fund’s current manager, Rob Bartolo, took the helm in late 2007. He replaced Bob Smith, who had managed the fund for 10 years.

Fees

T. Rowe Price Growth Stock Fund has an expense ratio of 0.69 percent.

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Risk

Growth companies are heavily dependent on earnings announcements, so poor earnings can lead to sharply falling prices, according to the fund’s prospectus.

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Fund Opinions

The fund's Value Line Overall Rank, a measure of risk-adjusted performance and relative growth in fund returns, is 1 on a scale of 1 to 5, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Growth Persistence rank, which awards funds that consistently outperform their broad universes, is 1 for one year, 2 for five years, and 2 for 10 years. Scores are on a 1 to 5 scale, with 1 being the best and 5 the worst.

Value Line 2014-03-12

The fund's Value Line Risk Rank, a measure of volatility, is 3 on a scale of 1 to 5, with 1 being the least volatile and 5 the most.

Value Line 2014-03-12

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying, “On most fronts, this fund is strong on stewardship, benefiting from a top-rate investment culture, low fees, a manager with skin in the game, and a spotless regulatory history. With a more independent board of directors, it would score even more highly.”

Morningstar 2010-02-17

In the annual Lipper/Barron’s Fund Families Survey for 2009, T. Rowe Price Funds ranks second out of 61 fund families surveyed.

2010-02-17

Morningstar gives this fund a stewardship rating of B on a scale of A to F, saying, “On most fronts, this fund is strong on stewardship, benefiting from a top-rate investment culture, low fees, a manager with skin in the game, and a spotless regulatory history. With a more independent board of directors, it would score even more highly.”

Morningstar 2010-02-17

In the annual Lipper/Barron’s Fund Families Survey for 2009, T. Rowe Price Funds ranks second out of 61 fund families surveyed.

2010-02-17