At the top of the page is the company name, ticker symbol and closing price of the stock, as of the publication date. This will usually be the stock’s Monday closing price.
The Why The Strength section tells you just that—why the stock is one of the strongest in the market today. This is no boilerplate, boring description of what the company does. Instead, we dig into the company’s fundamentals to discover what positive fundamental changes investors are seeing ahead, be it new management, a cyclical upturn in an industry or the offering of a new, revolutionary product or service.
Next to Why the Strength are the stock’s weekly and daily charts. Here you’ll see the stock’s weekly and daily price action (represented by the bars, which mark the high, low, and close of the stock) over the past year and four months, respectively. The 10-week and 40-week moving averages are indicated on the weekly charts, and the 25-day and 50-day moving averages are indicated on the daily charts.
You’ll also see the relative performance (RP) line, represented by the solid black line. The RP line simply filters out the market’s movements, telling you how the stock is doing relative the market as a whole. A strongly uptrending RP line, as you’ll find with all Top Ten stocks, tells you the stock is outperforming the market, and thus is likely to continue doing so in the weeks ahead.
Our Technical Analysis section analyzes the chart and the stock’s more recent price action. We explain the stock’s history, how it’s behaved in the past and what might come next. This is all in an effort to …
… come up with our Suggested Buy Range. Many times a stock will show up in Top Ten, yet not be at a great entry point—in these cases, waiting for a small pullback is often the best way to go. Regardless, whether we believe the stock can be bought right away, or whether we think you should wait for a retreat, the Suggested Buy Range offers you a guide as to where you should buy the stock, if you’re so interested. Note that these Buy Ranges are valid for just two weeks—beyond that, we can’t predict what the market or the stock’s sector will look like.
Our Investor Information box gives you the firm’s corporate phone number and website, allowing you to dig deeper into the stock’s details.
Lastly, Fundamentals provide you with some of the most important details of the company’s results. Here you’ll find the current and forward P/E ratios, total revenues over the past four quarters (allowing you to see if this is a small firm or a mammoth) and the profit margin in the latest quarter. You’ll also have the last four quarters sales and earnings results, including the percentage change vs. a year ago. The best candidates for purchase often have tremendous sales and earnings growth and big profit margins.
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Growth Investing
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