That’s a big word for most stock analysts.
It can encompass thousands of pages of numbers and data that Wall Street junior analysts pour over and which few to no retail traders ever take a minute to read or even consider when making a trade call.
But what matters to me are key numbers.
Not the full balance sheets or income statements – but the numbers that show where growth is being made.
These key numbers are what I pull when I run stocks through my Stock Surge Indicator (SSI) system to find the stocks that will surge for you and me.
To learn the real numbers that count for me, please download and read my special report for free right here: The Magic of the Stock Surge Indicator (SSI).
Then, to get the stocks with the right fundamentals that count, check out my full Watch List for this week right here.
But again, fundamentals need to be put into perspective.
And you and I need to get past that word and get to what really matters.
This is quickly summarized in one of my favorite quotes from my institutional days:
“I just heard an employee use the ‘F word’ on the trading floor and immediately fired them. Maybe other funds will tolerate that kind of language, but don’t you dare talk about Fundamentals here.”
What Really Matters
I’m a technical trader.
If a stock is going down, I don’t care how good the story is – I won’t buy it.
Price is king.
That’s not to say fundamentals are worthless.
After all, stocks go up for a reason.
But many investors spend too much time dissecting the financials.
In my early years, I spent thousands of hours analyzing balance sheets and income statements in an attempt to “outsmart” the market.
Guess what? It didn’t work.
When it comes to fundamentals, I only look at two things – sales and earnings.
More specifically, sales and earnings GROWTH.
That’s what matters.
That’s what institutions are looking for.
And institutional buying is what really sends stocks surging.
I like to see growth of 20% or more in each of the last few quarters.
Let me show you what is important to look at using my own trading system…
I ran a quick scan yesterday with the following filters:
- Country: USA
- Market Cap: < $10B
- EPS Growth This Year: > 30%
- EPS Growth This Quarter: > 30%
- Sales Growth this Quarter: > 30%
- 52-Week High/Low: 0%-5% below High
- 50-Day Moving Average: Price above SMA50
- 200-Day Moving Average: Price above SMA200
It gave me a list of 14 stocks.
Two of them were just bought out. Investors who were holding those stocks made 30%-50% overnight.
See what I mean about institutions liking high growth?
Here are the other 12:
- Avid Bioservices (CDMO)
- Compass Diversified (CODI)
- Crocs (CROX)
- DICK’S Sporting Goods (DKS)
- Innovative Industrial Properties (IIPR)
- Moelis & Company (MC)
- NETSTREIT Corp. (NTST)
- OptimizeRX (OPRX)
- Ranpak Holdings Corp. (PACK)
- Professional Holding Corp. (PFHD)
- Sprout Social (SPT)
- YETI Holdings (YETI)
Scanning for small, high-growth stocks with strong uptrends is a great way to find investment candidates.
The way I see it… It’s like fishing from a stocked pond.
I focus my attention on growth and then utilize my technical analysis skills to find the best next surge stocks.
In turn, these are the stocks that end up on my Watch List inside Traders Daily Direction.
For all of the details including the growth fundamentals that matter, check out my full Watch List for this week right here.
One Last Thing
Thank you for reading and subscribing to Traders Daily Direction. And we do hope that you’ve been cashing in on so many of the surging stocks that we’ve been presenting each and every week in the Watch List. And again, the full writeups on all of the stocks in the Watch List can be accesses right here: (TKTK).
All of the stocks that we present are vetted by our proprietary Stock Surge Indicator (SSI) system. And again, you can get the full rundown on how this works with the free download of the special report: The Magic of the SSI right here: (TKTK).
We have taken the SSI system to the next level with our newer Insider’s Edge product.
Insider’s Edge focused on the component of the SSI system of insider buys. Insiders have the definitive information on their companies and their stocks – so following their lead when they buy can provide some major advantages in trading stocks.
Yesterday I did a special live coaching session on insider buys that you can watch the replay right here: (TKTK).
If you’ve made a dime from the stocks inside Traders Daily Direction – you owe it to yourself to try Insider’s Edge. For a special offer and further information on Insider’s Edge, click here: (TKTK). And if you have any questions, please call our team at 888-483-5161.