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Seek out companies with the greatest potential for earnings growth. Companies growing revenues at a rapid pace are your best choice. Look for new emerging trends that can translate into mass expansion: trends that are scalable. Concentrate on entrepreneurially managed companies with exciting things going on (a catalyst), and you’ll eventually latch on to some big winners. The current P/E ratio at which a company trades is only a minor consideration compared with the potential for earnings growth. Growth stocks are driven by growth.
Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market: How to Achieve Superperformance in Stocks in Any Market
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