What Is Growth Rating
Growth Rating is an indication of how likely a company is to get bigger in revenue and/or size over the next year to two years.
How to use Growth Rating?
A high Growth Rating (80 and above) indicates that a company is likely to consistently grow and do so by a strong amount over the next year or two. A low rating (20 or below) means that it is likely to stay the same or even lose market share or revenue.
Investing in companies that are expected to grow, and then see high growth over the time you own the stock, is a great way to make money on longer time horizons. It is unlikely for a growing company's stock price to decline over longer time horizons.
The challenge with growth stocks is that you also have to look at how much "hype" you think is built into the stock. It is challenging to look at some stocks and know how much of the future growth is built into the price. Take the example of Tesla which as of this writing has a ~$620B market cap and ~$10B in revenue in the most recent Q. In contrast, Ford has a $56B market cap and ~$36B in revenue in the most recent Q. You can infer that a lot of growth has been built into Tesla's value, but knowing how much is a very difficult analysis task and one that many value investors avoid entirely.
Update Frequency and Usage for Growth Rating
Growth Rating updates once per day. As this is based on the companies forecasted financials, which update slowly, checking this once per day and using the number whenever you see it is completely fine. If you do see a big move in this number it could be great for the stock if it is going up or bad things if it is going down so always keep your eye on it.