New companies have spurred much of our economic growth. Their innovative products and services have improved worker productivity and the quality of life. They also have made shareholders richer. Institutions typically prefer firms that trade a healthy amount of shares at higher prices. So should you.
Stories generally focus on companies with strong fundamentals.
A firm with good sales growth might make a decent New America story. One that has solid earnings could be a good one. A basic IBD tenet is to seek out stocks and industry groups with the best Relative Price Strength Ratings. Those are your market leaders, the ones most likely to start and sustain a long, prosperous run-up. Though the rules aren t hard and fast, New America writers try to stick to stocks with RS Ratings of 80 or higher.