7. Earnings Growth - The NASDAQ Dozen

Earnings Growth, the next metric in your stock analysis, is also located on the Stock Research page. To access it, click on the Earnings Growth link at the top of the page (see Figure 12).

Why We Look at Earnings Growth
The earnings growth number gives you an idea of how much analysts believe earnings are going to grow per year for the next five years.

How to Score Earnings Growth
  • Pass—Give earnings growth a passing score if the Long Term 5-year number is greater than 8%.
  • Fail—Give earnings growth a failing score if the Long Term 5-year number is less than 8%.

Looking at earnings growth for WMT in Figure 12, WMT should receive a passing score. You can see that the Long Term 5-year number is greater than 8%.

Earnings Growth: PASS

Forecast Earnings Growth
Figure 12—Forecast Earnings Growth

  All content in this article is supplied by Wade Hansen of Learning Markets. To learn more about their investor education offerings, please visit learningmarkets.com. Find more great articles from Learning Markets in our news sections.

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