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

by Mark Minervini

Most companies have their high-growth phase when they’re relatively small and nimble. As they grow older, larger, and more mature, their growth begins to slow, as does the rate at which their stock prices appreciate. Superperformance stocks are often small-cap companies, although occasionally a big-cap name could see a surge in price after a turnaround or a period of depressed stock prices resulting from a bear market. Most of the time, however, it is a small-cap or a mid-cap stock that hits a period of accelerated growth, which in turn creates a superperformance price phase. Investors interested in superperformance should keep a constant lookout for small to medium-size companies in the growth stage of their life cycle (accelerating earning and sales). On balance, the growth of earnings and sales and, more important, the stock price is usually more rapid for a small to medium-size company than for a larger, mature company.