Stock Basics  |  Your Stock Buying Checklist   | Holding & Selling Stock   

Earnings: The Indispensable Element Of Great Stocks

Key Points To Remember

  • Insist on the best earnings performance, not just a promise of earnings. This way, you will pick stocks with the best probability of making Yahoo-like gains.
  • Look for companies reporting earnings growth of at least 25% in the most recent quarter.
  • Find companies with earnings that have accelerated in the three or four most recent quarters.
  • Identify stocks with annual earnings growth of at least 25% over each of the previous three years.
  • Focus on EPS Rating for a quick way to evaluate a company's earnings. EPS Ratings of 85 or higher are best.
  • Don't overemphasize the price/earnings ratio as a way to compare a company's stock relative to its earnings.


page 1 page 2 page 3 page 4 page 5 page 6 page 7 page 8

Your Stock Buying Checklist 1~3
Your Stock Buying Checklist 4~5
Your Stock Buying Checklist 6~8
Your Stock Buying Checklist 9~11