The surefire way of telling whether a stock will skyrocket is to see if its price pattern shows a cup with a handle pattern. That’s the first step to guiding your investing decision.
The next thing you should do is research your company from top to bottom. Make sure the company is showing its real earnings. You can check this out by seeing the company’s ERP (earnings per share) rating. A company worthy of your investment will show signs of huge earning potential and is on its path to realizing that potential.
Lastly, target companies that are leading innovators in their fields. Once you find it, does it satisfy the above two criteria? If yes, you are most likely looking at a company that might grow exponentially in a couple of years.
About the Author
William J. O’Neil is an American stockbroker and also the owner of his stock brokerage firm. Besides his passion for the stock market, O’Neil is also a writer. He has written books about how to make the right investment decisions.
O'Neil is the founder of Investor's Business Daily, a newspaper that covers stocks analysis and the latest trends. He is also the founder of the CANSLIM investment strategy, through which you can evaluate stocks on seven distinct criteria and come to an informed investment decision.