2 Monster Stocks in the Making
Getting in at the ground level of a monster stock is one of the surest ways for investors to get rich. But what makes for a monster stock, and how can investors discern between fast-growing companies on track to become burnouts and those that will genuinely become behemoths? In my view, real monster stocks have two properties. First, young monsters need to be growing their revenues and earnings voraciously, yet also sustainably, without incurring much debt that might slow their momentum.
Second, monster stocks tend to have a unique and difficult-to-replicate approach to exploiting their market that makes it tough for competitors to erode their market share without substantial and protracted effort. In the biotech industry, there are only a small handful of stocks that fit this bill, so let's explore a pair of the most promising contenders and see how they might evolve into something greater.
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Source Fool.com
