Mark Minervini’s Trade Like a Stock Market Wizard 3: Fundamentals


This is the third article of Mark Minervini’s growth stock investment method series.

If you missed the previous articles, please read them from the links below.

For more information on Minervini’s investment method, please actually purchase a book and chew it firmly.

Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market: Minervini, Mark: 8601404844553: Books
Trade Like a Stock Market Wizard: How to Achieve Super Performance in Stocks in Any Market on *FREE* shipping on qualifying offers. Trade Like a St...
Think & Trade Like a Champion: The... by Mark Minervini
Think & Trade Like a Champion: The Secrets, Rules & Blunt Truths of a Stock Market Wizard on *FREE* shipping on qualifying offers. Think & Trade Li...


In the previous article, I introduced the trends among the five major elements of Mr. Minervini’s growth stock investment method “SEPA”.

In this article, I will introduce the fundamentals in the SEPA.

When you hear the word “fundamentals”, many people may find it difficult to learn unfamiliar technical terms and formulas, but the fundamentals in the SEPA are very simple.

To summarize the points, it is recommended to buy stocks with a high increasing rate of EAP and sales, assuming that the trend is solid!


Minervini’s most important key item in fundamentals is EPS.

EPS is Earnings Per Share and is calculated by “net income ÷ number of issued shares”, but most stock information sites have already calculated it as EPS.

Regarding the EPS, candidates for buying should be narrowed down to companies whose EPS has increased considerably in the past few quarters as well as the previous quarter.

Specifically, it is recommended to find a company with an EPS growth rate of 40-100% or more in the last few quarters, and the longer the EPS growth period, the better the company. Will be.

On the contrary, it is better to think that the yellow traffic light is lit for the stocks whose EPS increase rate is decreasing.


The next most important fundamentals for Minervini is sales.

Finding a company with fast-growing sales, like EPS, is the key to finding growth stock.

Forecasts and Surprises

Minervini says companies that exceed their earnings expectations, especially EPS, are better.

It is also encouraged to buy stocks from companies whose analysts’ expectations have been revised upwards for the current fiscal year, not just the quarter.

Operating Profit Margin / Net Profit Margin

Minervini says that a well-managed, growing company should have consistently improved operating and net profit margins.


Many analysts consider stocks to be overbought when the PER is high, but the SEPA does not emphasize PER and, conversely, refrain from buying stocks of companies with extremely low PER.