Page 1102 - How to Make Money in Stocks Trilogy

88 HOW TO MAKE MONEY IN STOCKS—GETTING STARTED

99, meaning it was in the top 1% of all stocks in terms of overall strength—
including current and annual earnings growth.
So while not picture perfect, Chipotle—like Lululemon—showed market-
leading power, and it went on to gain 186% over the next 20 months.

Don’t Let the “Perfect” Become the Enemy of the “Very Good”

If you come across a stock that gets a passing grade for almost all the items
on this checklist but misses on one or two, don’t automatically write it off.
Look at the big picture, and see if it has the most critical things to look for:
Big earnings growth, a hot new product or service, and clear demand from
fund managers.

What if Your Stock Doesn’t Pass?
Check the Group Leaders in IBD Stock Checkup

© 2013 Investor’s Business Daily, Inc.
If the company you’re looking at doesn’t pass the checklist, try this: Check
the top-rated stocks in the same industry group, found at the top of Stock
Checkup (see the example above).
Focus primarily on the #1 and #2 stocks, and run them through the same
checklist. It’s a great way to discover the true industry leaders and build a
quality watch list.