How Sales and Earnings Growth
How Sales and Earnings
Growthis related to
a Stock’s Performance
If you go siphon through the version of the stock market there is a recurring burden among those stocks which have had some of the strongest price cherishing and it’s related to their Sales and Earnings Growth. If you plan a chart of all Sales and Earnings Growth against a companies Stock Price there is a typically a physically powerful relationship between the two.
Here is up to date example during the history year. USNA has been one of the more strongest performing stocks for the duration of the past year and has been experiencing speeding up Sales and Earnings Growth in excess of the past year. A table of USNA about Sales and Earnings Growth there.
Meanwhile if we take the table above and make a graphical plot of USNA’s Earnings Growth versus its Stock Price shows a correct strong relationship. Concern how USNA’s stock price ( blue line ) began to rise significantly as its Earnings Growth ( red line ) started to accelerate presentation in the Materialize of 2002 ( point A ) and has continued through the Spring of 2003 ( point B ). From March of 2002 until mid June of 2003 USNA has seen its stock price occur from $1. 60 to over $50 a share for a take of over 3000 %.
I foremost featured USNA as a Stock to observe based on its whole accelerating Sales and Earnings Growth, Cup and Handle chart sample in August of 2002 when it was trading approximately $7 a share. If you don’t suppose it click here for the balance. First notice how USNA created a 2 1 / 2 year Cup followed by a 3 month Handle prior to breaking out in October of 2002.
As this example shows despite the consequences of market conditions companies which have accelerating all Sales and Earnings Growth have the prospective to perform very well awaiting their Sales and Earnings Growth begins to slow down. If you don’t believe this go back and travel some of the best performing stocks of all time and a majority of them will for show similar characteristics.
The key is to spot those companies which are starting to establish a trend of accelerating Sales and Earnings Growth before everyone else does which takes a lot of time and research. This is what I do every week as I spend over 20 hours a week looking for companies that are starting to show symbols of accelerating Sales and Earnings Growth..