The Stars model focuses on growth stocks because they are the fastest price appreciating stocks. Usually growth stocks outperform value stocks except in a correction where value stocks may outperform. Many financial advisors think some growth stocks are risky if held in large quantities. If you rank stocks by annual return, the highest ranked stocks are usually growth stocks and the lowest ranked stocks are value stocks.

Can a value stock become a growth stock? Yes. When the return is high enough, a value stock becomes a growth stock. Can a small company become a growth stock? Yes. First a small stock has to grow enough in size to be in the S&P. At that point its return has to be high enough to demonstrate that it is a growth stock.

The biggest problem with value stocks is that it might take years for them to start having high returns. In the mean time other stocks are rising faster and adding to your performance.

When you are looking to improve your performance always sell your worst performer. If not sold it will continue to lower your portfolio performance.