One method for identifying lucrative stocks involves dividing gross profits by total assets, according to MarketWatch. The results are then used to compare different firms. The stocks of companies with relatively higher results are more likely to yield attractive returns in the future.Continue Reading
Tracking corporate Twitter announcements is another way of uncovering stock that is likely to yield attractive returns, explains Fox Business. Such announcements typically precede the more widely available news from major media outlets and may lead to profitable stock trading opportunities. This concept is the foundation of real-time information discovery services such as Dataminr.
Another method of finding lucrative stocks involves tracking and correctly interpreting a particular stock trend, according to Investor's Business Daily. The initial stage of the trend involves a rise in value of specific stocks by between 100 percent and 120 percent in four to eight weeks. This is succeeded by the second stage, which is characterized by a fall in value of these stocks by margins not exceeding 10 percent to 20 percent over a period of between three to five weeks. The last stage involves a sharp rise in trading volumes over a period of a few weeks, resulting in large financial returns for the owners of these stocks.
Still another method involves purchasing dividend stocks exclusively, as the Motley Fool explains. This results because these stocks typically perform better over the long term than their non-dividend counterparts.Learn more about Investing