At this point, it seems like everyone is trying to find “the next Google (GOOGL)” – and there’s a good reason for that. The stock has gained an incredible 2,950% in less than 16 years since the IPO:
Still today, owning GOOGL is a nice feather in your cap. Here in 2020, for instance, shares are up about 12%, whereas the broader S&P 500 is up just 3.5%.
But, for gains like the one shown above, you’ve got to invest in a company before it takes over the world. That’s what we’re aiming to do with my Breakthrough Stocks system, and on Wednesday at 7 p.m., I’ll be announcing its #1 stock buy to the public. Click here to RSVP for my free Breakthrough Stocks Summit.
In some ways, the landscape has changed a lot since Aug. 19, 2004, when Google was just another hot IPO. Apple (AAPL) was still down in the dumps, pre-iPhone. Netflix (NFLX) was a small DVD mail-order service, and Facebook (FB) was still a niche site for Ivy League students.
This was before Google itself launched many of its own game-changers, like the Android operating system, or Google Docs; even Gmail was still in beta-testing. At its IPO, GOOGL was essentially a search-engine company competing with Yahoo, which was twice its size. When Google went public with a price-to-earnings ratio of 80, the IPO was widely panned as crazy expensive and overhyped.
Then, in October 2005, GOOGL became a great buy in my stock grading system. It rated highly on its earnings growth, and the company’s secondary stock offering was popular with the “smart money” on Wall Street. Those are the classic signs of a great stock buy. I also saw that Google would soon qualify for the S&P 500 – another huge catalyst for stock gains, then and now.
The result, as Mark Hulbert wrote for MarketWatch, is that I was “one of the very first to recognize Google’s long-term potential” when I recommended GOOGL in those early days:
I’m also proud of the call I made in that very same article, where I predicted Google-like gains for NVIDIA Corporation (NVDA). Already since that interview, shares of NVDA have tripled. It’s one of my favorite holdings for Growth Investor, where I’m expecting great things still to come for this chipmaker.
There’s one simple reason why I’m so confident in these bold predictions: I’ve got a proven system for spotting market-beating stocks. And when it comes to small caps, one company just rose to the top of my list. I’ll be announcing it publicly for the first time at Wednesday’s Breakthrough Stock Summit, so be sure to RSVP now.
Whether it’s NVIDIA in 2016, Google in 2005, or my #1 Breakthrough Stock now, the signs of a great buy are always the same, in my book:
- I want to see a strong Quantitative Score, which basically suggests that the stock’s attracting big money on Wall Street. My formula is proprietary, though I’ve agreed to reveal the two factors my Quant Score measures during my presentation at the Breakthrough Stock Summit. (That’s something I rarely do outside of my paid services!)
- Meanwhile, the company simply has to display solid fundamentals. A lot of companies – particularly among small caps – can deliver hot sales growth…for a time. I also want to see solid earnings growth, operating margins, upward revisions by Wall Street analysts, and a history of beating those expectations. That’s when you know a stock has staying power.
When you see those signs, that’s how you can invest confidently in “the next Google” during its early days.
Note: The types of strategies I use are normally reserved for the rich and well connected, because the other “quant” guys out there tend to get comfortable on Wall Street. Me, I prefer my homes in Palm Beach and Reno, Nevada, and time spent with my family there.
But on Wednesday, you can hear all about the formula I use to beat the market – for free. Just click here to put your name down for my Breakthrough Stocks Summit on Wednesday, Feb. 26, at 7 p.m. ET.