In the classic musical “The Sound of Music,” the character of Sister Maria (played by Julie Andrews) tells us that we should start at the beginning because “that is a very fine place to start.”
In our search for profits investing in growth stocks, however, we do the opposite and start our search at the end. The plain fact is that at the end of the day, what makes for a great growth stock is the fundamentals of the company:
Can the company continually sell more of its products and services at higher and higher profits?
Can it continue to innovate and adapt to marketplace changes and maintain a leadership position?
Because of this tendency for the game to change, I have found that it is necessary to rank stocks on more than one fundamental variable. I have found that there are eight tried-and-true key fundamental factors that drive stellar stock price performance and have stood the test of time.