November 19, 2009

Insist on Both Annual and Current Quarterly Earnings Being Excellent

We prefer to see current quarterly earnings accelerating or at least maintaining the trend of several past quarters. A standout stock needs a sound growth record during recent years but also needs a strong current earnings record in the last few quarters. It is the unique combination of these two critical factors, rather than one or the other being outstanding, that creates a superb stock, or at least one that has a higher chance of true success.

Investor's Business Daily provides a relative earnings ranking (based on the latest five-year annual earnings record and recent quarterly earnings reports) for all common stocks shown in the daily NYSE, AMEX, and OTC stock price quotation tables.

More than 6000 stocks are compared against each other and ranked on a scale from 1 to 99. An 80 earnings per share rank means a company's current and five-year historical earnings record outclassed 80% of all other companies.

The earnings record of a corporation is the most critical, fundamental factor available for selecting potential winning stocks.

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