The First Cut: High and Consistent Growth
by John Bajkowski
Growth investors seek hot companies in hot industries. While there are many ways to measure growth, most investors focus on earnings in the belief that the stock price will expand to reflect the value of the underlying earnings. This issues First Cut presents exchange-listed firms that have increased revenue and earnings per share in each of the last five fiscal years.
To guard against any recent trend reversal, the First Cut screen required revenue and earnings over the last 12 months to be greater than or equal to the figure from the latest fiscal year. The screen also required that quarterly earnings and revenue for each of the latest four quarters be higher than the comparable quarter one year prior. Looking forward, the screen required that consensus expected earnings for the current fiscal year be greater than earnings for the last fiscal year. Lastly, all stocks were required to have been publicly traded for at least five years, with positive earnings for each of the last six years.
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