The Composite Rating combines key performance metrics like earnings, sales, and market strength into one score. A rating of 95 or higher indicates a company that is leading in its sector.

EPS (Earnings Per Share) measures a company's profitability per share. An EPS Rating of 80 or higher shows that a company has strong earnings growth compared to its peers.

EPS growth indicates how quickly a company's earnings per share are increasing. A growth rate of 25% or higher in recent quarters suggests strong financial health and growth potential.

Accelerating earnings growth occurs when a company's earnings growth rate increases over time, signaling improving business performance and a potential for stock price increases.

This measures the consistency of a company’s growth over the last three years. Sustained growth of 25% or more annually reflects a strong and stable growth trajectory.

Sales growth indicates a company's ability to generate revenue. A growth rate of 20%-25% or higher in the most recent quarter is a strong indicator of market demand and future potential.

ROE measures a company’s profitability in relation to shareholders' equity. An ROE of 17% or higher indicates efficient use of equity to generate profits.

The SMR Rating evaluates a company’s sales, profit margins, and return on equity. An A or B rating indicates strong financials across these key areas.

Innovation or changes in leadership can drive significant growth. Companies introducing new products, services, or management often see improved performance and stock appreciation.

Companies that rank among the top in their industry group are often the strongest performers, making them more likely to achieve sustained success and growth.

Being ranked in the top 40-50 of IBD’s 197 industry groups indicates that a company is in a leading sector, which can drive superior returns.

Institutional ownership indicates confidence in a stock's future performance. An increase in the number of funds owning a stock suggests strong institutional support.

This rating reflects the balance of buying and selling by institutions. A rating of A, B, or C indicates more buying than selling, which is a positive signal.

Relative Strength Rating compares a stock's price performance to the overall market. A rating of 80 or higher indicates the stock is outperforming most of the market.

Stocks priced above $15 tend to be more stable and less volatile, making them safer investments compared to lower-priced stocks.

High average daily volume ensures liquidity, making it easier to buy or sell shares without significantly affecting the stock's price.

A stock breaking out of a sound base indicates the start of a significant upward movement. This is often an ideal time to buy as the stock begins its new trend.

High volume during a breakout confirms that the price movement is backed by strong buying interest, reducing the risk of a false breakout.

A rising relative strength line indicates that the stock is outperforming the market. When this line reaches new highs, it’s a strong signal of potential gains.

Buying within 5% of the ideal buy point ensures you're entering the stock at a time when it has the most potential for growth while minimizing risk.