Seek Stocks Showing Big Current Earnings Incrcascs

In our models of the 500 best performing Stocks in the 40 years from 1953 through 1993, three out of four of these securities showed earnings iricreases averaging rnore than 70% in the latest publicly reported quarter before the Stocks began their major price advance. The one out of four that didn't show solid current quarter increases did so in the very next quarter, and those increases averaged 90%! If the best Stocks had profit increases of this magnitude before they advanced rapidly in price, why should you settle for mediocre or down earnings?

Our study showed that among all big gainers between 1970 and 1982, 86% reported higher earnings in their most recently published quarter, and 76% were up over 10%. The median earnings increase was 34% and the rnean (average) was up 90%. You may find that only about 2% of all Stocks listed for trading on the New York or American stock exchanges will, at any one time, show increases of this proportion in current quarterly net iiicome.


But, remember you want to find the exceptional Stocks rather than the lackluster ones, so set your sights high and Start looking for the superior Stocks, the small number of real leaders. They are there. Success is built on dreanis and ideas; however, it helps to know exactly  what you're looking for. Before you Start your search for tomorrow's super stock market leader, let nie teil you about a few of the traps and ni t falls.