Finding Growth Stock Winners: Focus on 8 Fundamental Factors
by Louis Navellier
In the classic musical “The Sound of Music,” the character of Sister Maria (played by Julie Andrews) tells us that we should start at the beginning because “that is a very fine place to start.”
In our search for profits investing in growth stocks, however, we do the opposite and start our search at the end. The plain fact is that at the end of the day, what makes for a great growth stock is the fundamentals of the company:
In this article
Share this article
Facebook
Twitter
E-mail
SeekingAlpha
Stumbleupon
Delicious
LinkedIn
- Can the company continually sell more of its products and services at higher and higher profits?
- Can it continue to innovate and adapt to marketplace changes and maintain a leadership position?
How do you identify these companies?
One definitive factor I have found over the years is that change is a fact of life on Wall Street. All too often I hear a pundit or guru telling us of one magic-bullet variable that is most important in picking winning stocks—such as price-earnings ratio or price-to-cash-flow ratio. Of course, these magic-bullet fundamentals can fall out of favor quickly.
To read more, please become an AAII Registered User or CLICK HERE.
Discussion
Perhaps AAII should consider the actual performance of pundits, as measured by Hulbert or actual, audited results, before lending our credibility to them.
posted over 2 years ago by Stephen from California
This approach leaves no stone unturned in search of good stocks. In my case, application of it would take considerable time and force me to pare down the names in the portfolio. Buffett has been advocating not investing in very many stocks all along. Even Jim Cramer says keep the number pretty low so that you have time for the "homework".
posted about 1 year ago by James from Tennessee
This article is printed from his "new book" that was copyrighted in 2007.
posted about 1 year ago by James from Maryland
