Wednesday, April 26, 2006

Annual Earnings Growth

Annual Earnings Growth

This is a good signal to really take note of. If the annual earning growth is strong, then that's a good signal that the stock will be good one. But, at times it's just not that simple. There are some key fundamentals to consider. Also, quarterly earnings are a hugh thing to watch out for, but some will say that a big factor in picking is to have an good positive looking annual earning growth of the last five years.

Things to really be looking for:

- EPS growth of at least 20% to 25%
- the last three years having a increase in annual earning growth
- ROE (Return On Equity) needs to be at least 15% or some might say 17% or higher

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