The article outlines four traits common to stocks that significantly outperform: strong sales growth, which underpins profits and scale efficiencies; expanding margins, showing better cost control and more profit per dollar of sales; innovation that keeps companies ahead of competitors; and favorable earnings estimate revisions that push stocks higher. Nvidia (NVDA) is cited as an example of both strong sales growth in its Data Center business and AI-driven innovation. It also describes the Zacks Rank, which uses four earnings-estimate factors to sort stocks into five groups, from ‘Strong Buy’ to ‘Strong Sell’.
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