Key insights
- The article outlines a strategy for identifying growth stocks early by combining strong quarterly revenue and EPS growth with high relative strength, constructive technical patterns, and industry leadership. It emphasizes the importance of both fundamental and technical analysis, favoring companies with solid business models over purely narrative-driven momentum plays. Focus on industry leaders within strong sectors.
Finding MONSTER STOCKS as I call them isn't easy perse, but it is more straightforward than you might think. Of course you are never going to hit a homerun each time, but that's the beauty of it, you don't need to. I use my own platform to do all of this but you can use whatever works for you. Anyways let's jump in.
So here's how I’m personally looking for monster stocks and catch them early (think PLTR, NVDA, ASTS, etc.). Maybe it helps some of you refine your own process as well.
Lately I’ve been heavily focused on finding stocks with a combination of:
- Strong quarterly revenue + EPS growth • High relative strength and composite scores • Clean stage 2 technical structures • Clear leadership within their industry group
A lot of this logic is inspired by some of the greatest trader/investor minds in the world.
So in practice, I’m usually looking for things like:
- Quarterly EPS and revenue growth of ~25%+ • Stocks trading above rising key moving averages (50D / 200D) • Strong relative strength versus the broader market • Tight, constructive technical action • Breakouts near highs on strong volume (ideal, though not mandatory)
I also try to combine both fundamentals and technicals instead of relying on just one side.
Charts absolutely matter, but personally I feel much more confident deploying serious capital into companies that also have genuinely strong underlying fundamentals. Narrative-driven momentum stocks can work, but I prefer having a promising, solid business beneath it.
Another thing that has worked incredibly well for me is focusing on industry leaders.
One of the easiest ways to spot true momentum leaders is by identifying which stocks are leading the strongest industries and sectors. That’s also why I built a panel that constantly shows the top 5 leaders within each industry group.
Statistically speaking, if you study the top-performing stocks each year, you’ll notice they often share similar characteristics:
- Small to mid-cap names • Quarterly revenue growth of 25%+ • Strong relative strength • Reasonable ADRs (~4–6%) • Clear institutional momentum • Industry/momentum leaders
The top stocks on my weekly list generally therefore have one or more of the following:
- Strong fundamentals and/or a financial turnaround story 2. High-quality technical structures (riding the MAs ideally) 3. Clear setups like VCPs, slingshots, base breakouts, etc.
That’s essentially the foundation of the process, shown here partially as well.
If you want to find the next PLTR, NVDA, ASTS, etc., I genuinely believe this is the type of framework you should be building around. Oh and if you truly want to find BIG potential names, look for 50% QoQ revenue growth and a BIG volume spike (9M+ shares traded for the day). But those are so rare, that generally I've found it more useful to lower the criteria slightly, which still helps me find big movers early on.
Hope that helps a bit happy to answer questions if people are interested.