Friday, March 25, 2011

The Best Dow Stocks for the Next 5 Years

The best performing stocks in the market are usually the fastest growing stocks or the stocks with the highest expected growth rates. In this article, we will present the 5-year growth rate estimates for the 30 members of the Dow Jones Industrial Average. The source of the data is Thomson Financial. Theoretically, the stocks with the highest growth estimates and lowest PE ratios should outperform the market on the average.

There are two main problems with using these estimates. First, the estimates may not be accurate under the current assumptions about the future. Second, the estimates may be accurate under the current assumptions, but we may experience adverse developments in the future that might render these estimates obsolete.

Read More: http://seekingalpha.com/article/259913-the-best-dow-stocks-for-the-next-5-years

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