The negative relation between asset growth or investment and future stock returns mainly comes from high- and low-growth firms that reverse their growth in the future. The negative relation does not exist among firms maintaining similar levels of growth. Controlling for past growth, future stock returns are positively related to realized (and unpredicted) future asset growth and profitability. By contrast, the relation between future returns and predicted future asset growth or profitability is somewhat mixed. Our evidence appears to be more consistent with the explanation of style investing with growth preference and extrapolation bias and the unconditional version of the dynamic q-theory and fails to support the overinvestment explanation, the real options explanation, or the conditional version of the dynamic q-theory.