Spotting Growth Stocks That Won't Poop Out

All eyes are on growth stocks, and investors are keeping their fingers crossed that Liz Claiborne isn't lurking inside their portfolios. It's not the dress designer they fear, but what happened on July 22. The apparel maker reported second-quarter earnings in line with analysts' forecasts. But management also said second-half sales and earnings would not match the gains of the first, and investors who bought the company as a growth stock headed for the exits. Shares plunged $7.25, or 15%, on that one day.

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