It is easy to find high-performing stocks in the market. While it is simple to screen for stocks that are trading in the upper end of their 52-week range of just shy of their all-time high you are able to quickly isolate which stocks have been top performers.
The big problem is that past performance is never a guarantee of future performance, so you can not build a successful long term investing strategy simply by buying shares in those stocks that have been the strongest in the recent past.
You always have to dig deeper in order to make sure conditions remain favorable for future stock appreciation. Two main things to consider are the stock’s valuation, and what analysts expect in terms of future earnings growth.
Wall Street loves growth, and a company’s ability to grow both the top and bottom line is paramount to a stock’s ability to trend higher. If you can find stocks that have both a low valuation and are expected to grow profits moving forward, you can reasonably assume that the underlying security will build on its recent gains.
Here are five high performing stocks that are currently trading at rock bottom prices.