CAN SLIM(6)

Annual Earnings Growth(3)


How to Identify Companies with Superior Annual Earnings Growth and Other Strong Fundamentals

An SMR Rating™ (Sales + Profit Margins+ Return on Equity) is provided for every stock listed in Investor's Business Daily.

This rating combines four fundamental factors that research shows can influence a stock's price: sales growth rate over the last three quarters, pre-and after-tax margins,and return on equity (ROE).

The SMR Rating™ uses a simple A to E scale:

A = Top 20% (Outperforming 80% of all other stocks in these key fundamentals)

B = Next 20%

C = Next 20%

D = Next 20%

E = Bottom 20% (Under performing 80% of all other stocks in these key fundamentals).