This Day On The Street
Continue to site
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here

Apple's Decade: How It Can Hit $500

3. Price Momentum: Some stocks are stuck in a rut with no escape. You do not want to own one of these. I know of many stocks that have traded within a narrow range for 10 years or more. With such a small chance for upside potential, the threat is always looming of being blindsided to the downside.

For this reason, I don't like having these "tapped out" stocks in my portfolio. What causes a stock to get stuck in a rut? Obviously, companies with no growth belong in this category, but what about a market-share leader?

Unfortunately, most market-share leaders are not great stocks to own because they have already reached the top. A company with nowhere to go but down represents a bad stock pick.

4. Expectations: Wall Street has turned into a game of analysts trying to estimate quarterly earnings data and companies striving to meet or beat those estimates. When a company can beat expectations, the stock benefits to the upside. The analyst community has become so sophisticated in its methods of projecting future earnings, that it has become more and more difficult for companies to deliver. Find a company that consistently exceeds expectations.

5. Uncertainty: The future by definition is uncertain. Investors hate uncertainty, and yet it is inherent in the system. So the key is to find stocks with positive uncertainty rather than negative uncertainty. What is positive uncertainty? Positive uncertainty arises when a company shows a trend of innovation that leads Wall Street to believe that more success might be around the corner.
2 of 5

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
Stocks Under $10

David Peltier uncovers low dollar stocks with serious upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Only $9.95
14-Days Free
Dividend Stock Advisor

David Peltier identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

Our options trading pros provide over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
SYM TRADE IT LAST %CHG
AAPL $121.30 0.00%
NOK $7.05 0.00%
T $34.74 0.00%
VZ $46.79 0.00%
FB $94.01 0.00%

Markets

Chart of I:DJI
DOW 17,689.86 -56.12 -0.32%
S&P 500 2,103.84 -4.79 -0.23%
NASDAQ 5,128.2810 -0.5040 -0.01%

Free Reports

Top Rated Stocks Top Rated Funds Top Rated ETFs