Qualities to Look for in Stock Market Picks
What do multi-billion dollar funds need to be stock market picks?
Earnings Surprises are money managers’ favorite factor. An earnings surprise is when reported earnings beat forecasts Many investors believe that surprises come in bunches. Positive earnings surprise usually come in groups and the stocks tend to continue to rise for many months and vice versa for Negative earnings surprises.
Analysts Raising Estimates – When an analysts significantly increases their forecasts a stock usually continues up for quite a while and down when they lower earnings forecasts.
Accelerating Earnings Growth is a huge factor for the big boys to consider a trade to be a stock market pick. If a company which usually has earnings at 15% then has earnings grow to 30%. then earnings has positive momentum. Price-to-book value compares the recent stock price to shareholders’ equity, which is called book value when calculated on a per-share basis. Should be under 15.
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on Monday, June 14th, 2010 at 3:45 am and is filed under Financial, General, Tips.
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