These companies have excellent earnings growth prospects to fuel market-beating returns for investors.
The Nasdaq Composite has returned an average annual return of 11% over the last 30 years. That comes out to a cumulative return of 2,440%. That’s an enviable return on investment over the long term. If you want to beat that return, you need to invest in stocks with above-average growth prospects.
Stock prices can fluctuate for all kinds of reasons in the near term, so trying to beat the market day to day is a fool’s errand. However, over many years, there is a high correlation between a company’s earnings performance and the stock’s return. If you focus on companies that can at least double their earnings in five years, which comes to an annualized earnings increase of 15%, you significantly stack the odds in your favor of beating the market.
To give you some ideas, here are two top stocks that have the potential to double in value…
