Two things that Wall Street always looks for in stocks is yield and growth. Dividends are a great way to build income into a portfolio, but unless you invest in stocks with upside potential, you can easily lose more in share price than you earn through their dividend program.
When looking for stocks that possess nice upside potential, the best way to assure a stock will move higher is to screen out companies that have been growing earnings, and are forecast to continue doing so moving forward.
Earnings growth is a great screening tool because as a company grows its earnings, Wall Street has to push the underlying security higher in order to maintain the market’s valuation on the stock.
With the market near record levels, it is more important than ever to look for companies that have strong earnings growth forecasts. The higher the market runs, the more concerned investors will become of an eventual correction, which could lead to money moving from more volatile to less volatile stocks.
Stocks with strong capital programs are typically less volatile than the overall market, especially when earnings growth is present, so the near-term outlook is bullish for companies with big yields and strong growth estimates. The following five stocks all fall into this category.