Microsoft: Market cap $264.98 billion with revenue projected to grow 6.60% next year and earnings to grow 8.63% annually for the next five years. Institutional ownership is 69.39%. Oracle: Market cap $152.39 billion with revenue predicted to grow 5.20% next year and earnings estimated to increase 10.62% annually for the next five years. Institutional ownership is 60.23%. SAP: Market cap $90.3 billion with revenue expected to increase 9.30% next year and earnings projected to increase 11% annually for the next five years. Institutional ownership is only 4.01%.
When you compare hyper-growth stock to the industry leaders, it's like comparing battleships to jet skis. The smaller stocks are more nimble and can turn on a dime, so you need to use charts that are sensitive to change. My favorite charts compares a stock's price to its 20-, 50- and 100-day moving averages, Barchart's proprietary Trend Spotter buy/sell signal and its 14-day turtle channel. Using those parameters give me a good sense of a stock's momentum and I usually bail when it drops below its 50-day moving averages. If the stock's price keeps gaining, I look for the short interest to bail fast and cover positions. At the time of publication, the author did not hold positions in any of the stocks mentioned in this article.Follow @JimVanMeertenThis article was written by an independent contributor, separate from TheStreet's regular news coverage.