There are many dynamic brands in the US that quickly rise through the growth stage, such as Tesla. How can you find stocks that have the potential to show dramatic growth in the future? Here is a summary of the points for evaluating a company's growth potential.
1,Revenue (sales) growth
The growth of earnings (sales) is also the growth of a company, so it is essential.
Absolute value of earnings growth rate
→Compared to the previous year20% or moreCompanies that have shown profit growth and have steadily increased profits since then are attractive.
Changes in earnings growth
→Ideally, the growth rate is increasing over time.
Comparison with other companies in the same industry
→Companies that have the potential to make a big leap forward in the future tend to have higher profit growth rates compared to other companies in the same industry.
2,Net profit growth
Net profit growth is an important factor influencing a company's performance.
Absolute value of net profit growth rate
→Compared to the previous year20% or moreCompanies that have shown growth in net profit and have steadily increased net profit since then are attractive.
Changes in net profit growth
→Ideally, net profit increases over time.
These two are similar to the points we look at when evaluating revenue growth.
However...