Friday, February 18, 2005

IBD's EPS Ranking

I'm an avid reader of the Investors Business Daily (IBD) and I use their EPS ranking system in my stock research. I like to position my portfolio with relatively high EPS rankings (80 or above). Here are the company rankings in my portfolio:

Microsoft 45 (EPS ranking 1-99)
Amgen 91
Biogen Idec 99
Genzyme 89
Fisher Scientific 92
Qiagen 91
Cytyc 91
Pfizer 87
Las Vegas Sands 80
Invitrogen 95
Genentech 98

I know, why do I still have Microsoft??? It's a value play, I believe people are under estimating their new operating system release (Longhorn).

I will usually hold onto the stock as long as their EPS ranking is 80 or above. As a growth investor, you want to pick companies with strong consistent EPS growth over time. This system has worked for me over the years.


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