New Cycles Create New Leaders

Each soaring new cycle in the stock market will catapult fresh leadership stocks to the attention of the market, some of which will begin to be called growth stocks. The growth record in itself, however, is only a starting point for would-be victorious investors, and it should be the first of many earnings measurements you should check.
For example, companies with outstanding five-year growth records of 30% per year but whose current earnings in the last two quarters have slowed significantly to + 15% and + 10% should be avoided in most instances.