When the weatherman calls for weekend showers, we think twice before packing for a picnic. But people don't hesitate on a blue-sky forecast.
Investors behave the same.
When Wall Street envisions more profit growth in a top-flight company, its stock usually reflects that sentiment. A great stock often rallies to new highs while bearing the expectations of strong profits in the future. Those heady expectations actually paled in comparison to what these companies already had achieved before they sprinted toward high gains. These firms also delivered accelerating growth for several quarters before their stocks broke out. Finding companies with these traits will increase your chances of success.