5 criteria to find your next Nvidia!
Of the 90s $NVIDIA(NVDA.US$ I'd like to share my findings after analyzing various successful companies such as Tesla, Monster Beverage, Microsoft, Elf Beauty, and Cisco.
Getting one stock like Nvidia could change your life forever financially. Nvidia stock has been rising at a rate of 38.11% per year since 1999, and is one of the most successful stocks in history.
First criterion: Positive revenue growth (at least 20% annual growth over the past 3 years)
Revenue is the first and most important criterion. If there is no revenue, there is no income. Nvidia's revenue increased from 0.1 billion to 50 million dollars to nearly 61 billion dollars in 2024. $Tesla(TSLA.US$ , Monster, $Microsoft(MSFT.US$ Other monster stocks, such as Cisco, also experienced this kind of earnings growth when they exploded. This makes sense because companies with rapidly growing earnings are expected to see rapid share price growth in the future.
Second criterion: EPS growth (at least 20% growth over the past 3 years)
Positive EPS growth is also important! Earnings per share (EPS) is a measure of a company's profitability showing earnings per issued common share. Without profit, it becomes difficult for companies to invest to break out of competition!
Nvidia's data is here. We don't have data before 2012, but we can see that the period 2012 to 2024 was mostly positive. nVidia's EPS has risen from $0.26 in 2014 to $13.12 now. This is 48% compound growth over the past 10 years. EPS is 50 times larger. The stock price has risen from $0.3 in early 2014 to $128 now. This is no accident.
Third criterion: Increased R&D expenses (competitive advantage)
This is underrated, but it's very important. This expense is strategically made to improve the company's products and differentiate itself from competitors.
Fourth: management team
Whether or not the boss has a long term is important.
No. 5:52-week high (momentum and technical analysis)
For example, let's say you studied Nvidia as homework and saw a new high of $0.4 in 2013. Buy it, decide to ride the waves over time, and add positions when the stock reaches a new 52-week high. It will pay off.
A 52-week chart can help you identify long-term trends and act on them. If you had added positions every time the stock price hit a new high, you might have benefited too. Of course, it's not a 100% winning strategy, but you can make big money with proper money management.
I hope this post is helpful and helpful to everyone in finding the next nVidia.
Disclaimer: Community is offered by Moomoo Technologies Inc. and is for educational purposes only.
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