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.
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