2007-11-16

How To Select The Right Stocks At The Right Time(13)

Key Points To Remember


Insist on the best earnings performance, not just a promise of earnings. This way, you will pick stocks with the best probability of making Yahoo-like gains.


Look for companies reporting earnings growth of at least 25% in the most recent quarter.


Find companies with earnings that have accelerated in the three or four most recent quarters.


Identify stocks with annual earnings growth of at least 25% over each of the previous three years.


Focus on EPS Rating for a quick way to evaluate a company's earnings. EPS Ratings of 85 or higher are best.


Don't overemphasize the price/earnings ratio as a way to compare a company's stock relative to its earnings.

No comments: