Written by: Robert and Russell Markham

Last week, we spoke about the falling earnings in Westpac Bank (WBC.AX) and this week, I promised we would take a snapshot of some great performing stocks. This week we will find some great stocks for Australia and for the US market in just a few simple steps. Read on and check out the video at the end of this Essay.

For this week, rather than look at stocks with falling earnings (per our banking stocks last week), let’s find rising Earnings. Rather than find stocks with negative earnings Growth Rates (GRT), let’s find stocks with solid Growth Rates! You have the power with VectorVest to set your parameters accordingly. Before I started using VectorVest, I would scratch around trying to find my stocks. I would often rely on blog sites to try get tips and rely on word of mouth and speak to a few “professionals” out in the marketplace. It always ended in frustration and losses until I found VectorVest.

The good news is that your struggles are over. You now have the power to cut through all the noise and get your answers. Get the facts…empower yourself. The tool I am going to use is UniSearch, and I am going to construct a basic UniSearch. Here is a secret, you do not need to setup overly complex scans to find great stocks. Often, just one or two key screening criteria, along with a suitable sort is all that you need.

To demonstrate, and to keep things simple, I am going to build a search (the video will show you exactly how to do this) as follows:
Price < Value EPS Delta 520 Weeks >=200%
CI > =1.20
RS > =1.00
GRT >=10%

Ensure the sort is in VST in descending order.

This search will find some of the best companies growing their earnings by 200% or more over the last 520 weeks. The parameters being applied are robust. We will ensure that stocks we find are for companies that currently have smooth price patterns (per our Comfort Index indicator (CI)). We will find companies that have strong fundamentals (per our RS score >= 1.00) and companies that a GRT of 10% or higher.

This is just one such example that you can apply in just a few seconds using VectorVest. You do not have to limit yourself to doing this type of a search to just Australia. Make use of the second country you have access to. By default, you are setup with the US market as your second country. Next time you log into VectorVest, before you enter in your username and password, check what flags are displayed on your screen. Chances are you have the US flag and the Australia flag. To log into the US Market, all you would need to do is click onto the US flag and then enter in the same username and password, just like you do to log in for Australia.

Click on the link below to watch how we setup this easy to apply search for the US and Australia market.

Key findings for the video:

  • 8 stocks out of 2,000+ stocks returned for the Australia market per the criteria above
  • 26 stocks out of 8,000+ stocks returned for the US Market per the criteria above
  • The stocks for the US and AU on average have a very smooth rising set of earnings
  • All the stocks returned per above are undervalued
  • All the stocks found for the US and Australia have double digit GRT scores

Please CLICK HERE to see the video for this Essay.