- You Don’t Just Happen Upon Winning Stocks
- Use Key Metrics Like Earnings Growth and Earnings per Share to Snare Big Gains
- Buy NOW, Before These 2 Companies Report Earnings This Week!
We all want to own winning stocks before they make their next big breakout. Here’s how to help make that happen now…
FACT: To identify winning stocks, you must have a way to measure those stocks on key metrics.
So, what are the key metrics that tell you if a stock is likely to breakout?
One critical element that drives stocks higher is earnings, and particularly earnings growth. And NOT just earnings growth in a vacuum…
This means measuring a company’s earnings growth against all other publicly traded companies in order to uncover the superstars from the wannabees.
To do this, use a tool called the Earnings Per Share rating, a metric from Investor’s Business Daily.
Earnings Per Share rating, or EPS, allows you to get a sense of a company’s earnings growth power over the most recent quarters, as well as over the past several years. A company’s earnings strength can then be measured against its peers, and that tells us how strong the company is relative to the rest of the publicly traded universe.
For example, if a company has an EPS rating of 90, it means it outperformed 90% of all other publicly traded firms in terms of earnings growth.
This is critical, because the smart money tends to flow into shares of companies that display consistent earnings growth. And while earnings growth is by no means the only criteria by which to select stocks, it’s a critical component—a component that becomes even more important during earnings season.
Next week, we’ll get earnings reports for two stocks with top-tier EPS ratings. They’ve already demonstrated their fitness on the earnings front, and if they can come in with another quarter of strong results, expect each to see the kind of breakout that every investor desires.
Act fast on these two earnings powerhouses to play this week…