The C in — for current quarterly earnings — is crucial to successful investing. Without such growth, your stock is just one in a mediocre pack. Happily, IBD can help you spot the companies putting up the fattest quarterly earnings gains.
Is the quarterly earnings gauge the most important of all CAN SLIM ingredients? No. There are only crucial parts to a whole.
Quarterly earnings growth shows you the health of a company's short-term profitability.
In the best-selling book "," IBD founder and Chairman William O'Neil advises to seek out only those companies that have posted EPS and sales gains of at least 25% in the latest quarter.
Please don't feel limited by 25%. As Mae West once said, "Too much of a good thing ... can be wonderful." If you don't need 50 stocks in your portfolio, you may want to set your growth bar ridiculously high.
Are there companies growing their bottom lines by triple digits? Sure. The stocks of these companies may not be the best candidates — remember, the C is just one ingredient in a larger recipe — but such stocks may be a great place to start your search.
So, how do you find such stocks
• Flip through Sector Leaders.
They are the highlighted companies at the top of each sector in IBD's stock tables. The Financial sector has two leaders. Financial Engines (FNGN) reported 62% higher earnings on 36% higher revenue in Q3. FleetCor Technologies (FLT) upped those gauges 46% and 45%, respectively. That's why they're sector leaders.
• Check out Stock Spotlight.
This features a different company or two every day. Next to the feature article you'll find 16 charts — each of a company with standout fundamentals.
Each chart also includes lots of info, including the most recent quarterly EPS and sales gains. These companies are almost certainly growing their business by far more than 25%.
• Scan the market updates.
Found on IBD's sister website Investors.com, they tend to showcase mostly high-growth stocks and members of the IBD 50, although turnarounds sneak in.
Screen of the Day on Investors.com may help, too. You may also consider subscribing to MarketSmith, IBD's affiliate service. Here, you can build your own criteria for a tailor-made screen that includes EPS and .
- Investment & Company Information