Troubled stock can bring you high profit. However, investing this stock is very risky. Troubled company can correct them self or can go into bankrupt. Therefore, before you invest in this stock, you need to analyze the company:

1. Assess company’s performance from its income statement, cash flow statement, and debt-to-equity ratio. An increasing profit may show signs of improvement. An increasing debt-to-equity ratio means that the company has higher risk than before. The company might try to solve their problem by borrow more debt, which is dangerous. They can get deeper into trouble.
2. Does the company have good management? Do they have great competitive advantage? If yes, then the company has high probability to overcome their problem. 
3. Check the company probability for going into bankrupt. Edward Altman developed a Z-score model based on financial ratios to predict whether a company will go into bankrupt or not.

Tags: cash flow, debt to equity, Financial Ratios, income statement, Z-score

Growth investing is done by looking at company which has high growth. In the late 1990s, when technology company flourish, this method gives very high return.
How?
This method is focusing on growth, so it will find company with high growth, high earning growth. But you must also watch other aspect, like it’s debt to equity, and ROE.
How’s the performance?
Also analysis done by many people, stock with high growth usually beat other stock in return. But you also must remember to check that company not just by looking at its growth projection. Other things to consider like will it be likely that the company find any new technology, product, or project which will significantly influence its earning.
For who?
Growth investing is long term horizon, more than 1 year. Company with high growth will always reinvesting their self to produce new technology and product, so that future earning will rise significantly in the future.

Tags: debt to equity, Growth investing, ROE