How To Select The Right Stocks At The Right Time(4)

Earnings: The Indispensable Element Of Great Stocks(4)


Three out of four companies averaged earnings increases of 70% or more in the quarter right before they started to make a huge price move.

Three-quarters of these top stocks showed at least some positive annual growth rate over the five years before their major price move.


This research continues today, and consistently confirms the original findings about the significance of strong earnings growth.

The study also reinforces that under countless market conditions over the years, the selection criteria still work today when searching for winning stocks.

When it comes to investing, start with a look at a company's quarterly and annual earnings record.