I've discussed many things that are driving growth investing in financial product such as SOLO stock. I don't know how much they will grow, but I believe each could grow by 20% a year or more over the next decade. Those are a lot of numbers to digest, but it's important to have the right questions. So I'll list them below.
What's driving this growth?
I've taken a look at the companies' customer bases and their products, and each stock has a large customer base that large enterprises dominate. (I include military and government as large enterprises, too.) This is good because there's less chance of cannibalization from the small consumer base. Each of these stocks also has an active cloud-based data center business.
How to identify stocks
To help you find the best stocks to buy, I've listed nine attributes that I look for when evaluating stocks. When you identify a stock that checks at least six attributes, you are on the right track.
Founded: Start the company from scratch. You can't get more "new" than this.
Start the company from scratch. You can't get more "new" than this. Revenue Growth: The company should be increasing sales at a fast clip, especially if it's new.
The company should be increasing sales at a fast clip, especially if it's new. Leading Market Share: The company should be gaining market share. This has been the case for instance of SENS stock.
The company should be gaining market share. Strong Financials: The company's profit and cash flow are robust.
The company's profit and cash flow are robust.
Stock market momentum
I can't think of a time where this market has been this driven. You can't get out of bed in the morning without being bombarded with reports of new record highs. It is hard not to get overwhelmed because the headlines are unrelenting and so far have proven to be correct. According to Nasdaq, US stocks have advanced month-over-month for 43 consecutive months. That's a new record!
So I will take a step back and ask you the key question: What is causing this upward pressure?
The answer to that is the bull market and economic growth as I mentioned in the first video, most traditional charts in technical analysis point to higher prices ahead.
But I have a few reasons to believe that this rally is reaching its maximum.
How to make money with stocks
In a moment, you'll learn why I'm bullish on these three stocks and why you should add them to your watch list. But, first, here are the highlights on each of these stocks:
KMX: This small-cap stock just keeps going and going. In fact, it's now up 100% since 2016, and it's got a ton of momentum going into the end of October. The company has reported double-digit sales growth each of the past six quarters, along with 24% operating income growth over that time.
Over the past six months, analysts expect sales growth to continue, with 29.8% projected for 2018. As a result, the stock has a forward P/E of less than 12, which is a low price considering that sales growth has been so strong lately.
