1. Investment opportunities in the fourth quarter exist in small and medium-sized sub-industries such as coal machinery, national defense and military industry, marine engineering, agricultural machinery, highway maintenance equipment and refrigeration and air compression equipment. These industries are generally limited by macro-economy, and some stocks are influenced by national policies, import substitution, artificial substitution and other factors. Their sub-industries have extremely high growth, and the high growth of the company's performance is guaranteed.
2. A few scholars and practitioners have systematically explored growth stocks. Growth stocks usually refer to stocks with fast income growth and great potential for future development, and their P/E ratio and P/B ratio are usually high. It is found that high-expectation growth stocks or growth stocks that have attracted much attention usually have poor returns, while low-expectation growth stocks perform well. The main way of domestic economic growth transformation is to vigorously develop emerging high-growth industries, and growth stocks will probably mainly appear in these industries, and enjoy a high premium based on growth in the process.
4. The main criterion of the stock with the best growth is: gross profit margin. Many traditional manufacturing and retail enterprises can do well. For example, those who sell electrical appliances, such as those who make cars, have good companies, but the gross profit margin is less than 20%, which shows that the scale is an important determinant of the growth of such enterprises. When the scale reaches a certain level, the growth rate is almost inevitable. Generally, only the gross profit margin is above 30-40%, of course, different industries are different. Equity, which is a generally accepted standard, the smaller the equity, the greater the motivation for expansion, the greater the possibility of expansion and the greater the potential. In addition, China investors have been keen on small-cap stocks. However, the total share capital generally does not exceed10 billion, and the smaller the better. It is difficult to find stocks with good quality and small circulating capital now. Return on net assets (ROE), an indicator of personal superstition, is a practical indicator to measure the profitability of lazy people in stock selection, which usually requires more than 5- 10%. Needless to say, the proportion of the main business will never be touched by companies that are not doing their jobs. The higher the better, the best is 100%.