How I Picked 7 Of The 10 Best Performing Stocks Of the 2010s, Part 2
Yesterday, I listed the top 10 performing stocks of the 2010s. I pointed out that I had picked 7 of them and my clients and I made money from those picks.
This email is Part 2 of a series of emails about how I find such great stocks.
Yesterday, talked about how earnings growth is the most important factor driving stock prices.
Today, I want to take this a little further. You need to focus on the long term trend in earnings growth. The faster the better, all other things being equal.
But the biggest jumps in stock price come when there is a positive earnings surprise. This happens when the company reports earnings that are higher than stock analysts and the market expects.
The price of the stock then jumps up 10, 20, and sometimes 50% in just one day!
So one of my core techniques is to find stocks that are likely to have a positive earnings surprise. How do I find them?
I start with the list created from what I talked about in the last email. I find stocks that are growing earnings very quickly. I then look for stocks in that list that have had earnings surprises in each of the last two quarters. Usually, if a company is consistently creating positive earnings surprises then they will continue to do so in the future.
Here’s how I can help you learn the exact rules for finding stocks like the ones that were top performers for the 2010s: