Acceleration Matters More Than Big Numbers
In Trade Like a Stock Market Wizard, Mark Minervini emphasizes something most investors overlook.
It is not just strong earnings and sales that drive big stock moves.
It is acceleration.
He writes:
“More than 90 percent of the biggest stock market winners showed some form of earnings acceleration before or during their huge price moves.”
Acceleration means growth is increasing quarter over quarter.
For example:
10% → 28% → 56%
That is powerful.
But 80% → 65% → 28%
Even though those are still strong numbers, that is deceleration.
And deceleration often marks the beginning of a stock topping process.
Minervini also makes clear that earnings should be supported by sales:
“In addition to strong, accelerating earnings per share growth, you want to see sales exhibit the same characteristics.”
AVT is an example of this.
Estimates are improving.
Earnings growth is projected to accelerate.
Sales growth is turning higher.
That shift in trajectory is often more important than the absolute number.
Acceleration signals expansion.
Deceleration signals caution.
That is why I focus not just on good fundamentals, but on improving fundamentals.
It’s not just about finding growth.
It is finding growth that is speeding up.
