What Is A Top Gun Stock?

Our trading philosophy is based on the concept of "own the best and ignore the rest." Thus, we focus our attention solely on the Top Guns of the market -- the top ranked stocks in the strongest industry groups.

Ask yourself, why would you want to own a stock that isn't one of the market's leaders? Why trade any old company when you can own the market's top rated stocks?

The Top Guns Stock Trading Strategy employs a disciplined selection system designed to identify the top ranked stocks within the top performing industry sectors. Each week every stock in our universe is ranked in terms of earnings strength, earnings momentum, and company performance. In addition, the system ranks more than 100 Industry Sectors for performance and momentum. Only the top ranked stocks within the top ranked industries are eligible for selection.

The Top Guns have the best earnings strength. The Top Guns are in the Top Ranked industry groups. The Top Guns have strong fundamentals. The Top Guns also have great technical set-ups. From our perspective, the Top Guns put the odds in your favor before you even make a trade. So why would anyone trade anything else? In short, a Top Guns Stock is a company which has a ranking of 8.5 or higher (out of 10) AND is in one of the top ranked Industry Groups.

How Do We Find the"Top Guns?"

The next question becomes, how do we find these top gun stocks? Cutting straight to the chase; we follow a disciplined three-step process.

Step 1: Identity the Top Industry Groups
We first determine the markets leadership by identifying the top performing industry groups. From 100 Industry Groups, our proprietary ranking systems (which has been designed in conjunction with the nation's leading independent research firm) identify the top 20 groups based on Group Strength, Momentum and indicators that are specific to the industry being ranked.

Step 2: Isolate the Highest Ranked Companies
From more than 1500 stocks, the system identifies the top 5% in terms of earnings strength, earnings momentum, company performance, and relative strength.

Step 3: Select Strongest Stocks in Top Industry Groups
We then merge the two rankings and select the top ranked companies that are in the top Industry Groups. This keeps the portfolio concentrated in the best performing stocks in the leading sectors of the market.

How Can YOU Find Top Gun Stocks?

The first step to finding Top Gun stock picks is to Register as a Free Member with TGT.

One of the primary goals at TGT. is to introduce the power of using Top Gun stocks in your investment strategies. Therefore, each and every week we offer two FREE Reports to registered visitors which detail a handful of Top Gun stock ideas:

So be sure to register today with TGT. to get access to these FREE REPORTS. Why are giving away free stock ideas? Simply put, we strongly believe that once you discover the power of using the top rated stocks in the market, you will want to subscribe to one of our services.

More on Identifying the Top Industry Sectors

The stock market can be broken down into sectors and sub-sectors. For example, all stocks are categorized in one of 10 broad sectors:

Start with the 10 Economic Sectors:

  • Basic Materials
  • Consumer Staples
  • Consumer Discretionary
  • Energy
  • Financials
  • Health Care
  • Industrial
  • Technology
  • Telecommunications
  • Utilities

From there, each Sector is be broken down further into what 20 Industries. And from the 20 Industries come over 100 Industry Sectors. Each week our system ranks each of the 109 Industry Sectors in terms of Relative Strength, Momentum, and Indicators Specific to each Industry.

More on Identifying the Top Ranked Companies

Each week we rank all stocks in our universe in terms of Earnings Strength and Company performance. It is important to understand that this is NOT one of those typical earnings momentum types of formulas which became so popular in the late 1990s. Our proprietary system for determining earnings strength includes hundreds of indicators and includes:

  • The Momentum of Earnings Estimate Revisions
  • The Momentum of Analysts Expectations
  • Measures for Earnings Surprises
  • The Upside Potential for Earnings Estimates
  • In short, only the stocks with the strongest performance and earnings strength make it into the Top Guns Stock Universe.

    So let's review. We start with a proprietary list of 1500 Stocks - the largest, most liquid stocks traded in the United States. On a weekly basis, we then narrow the field to our Top Guns Universe. As we've laid out, this process begins by identifying the top Industry Groups in terms of Relative Strength, Momentum, and Industry Indicators. Next, every stock is ranked in terms of Earnings Strength, Earnings Momentum and Company Performance.

    We then generate a list of only the top ranked stocks which are also in the top Industry Groups. This cuts the field to approximately 60 - 75 Top Guns.

    Next, our Stock Selection Team (professional traders averaging more than 17 years experience) reviews each chart from a technical standpoint in search of the best short-term trading opportunities. The result of this effort is our short-list of trading candidates for the week.

    We then monitor the market and the charts for opportunities. Whenever we are ready to enter a trade, we send a real-time Trading ALERT! Email with all the important details. (We always wait until members have received the ALERT! before we enter our trade.)

    The alerts are concise and to the point. We tell you EXACTLY what we are buying, the limit price, what kind of order we are entering, the upside target, the downside stop, how much we are allocating to the trade and the strategy behind the transaction.

    In Bull market environments, we strive to maximize returns with our "Own the Best and Ignore the Rest" approach. However, when risk is high (Bear Markets and severe corrections), our focus shifts to managing risk and preserving capital. Thus, a constant in our management approach is to remain flexible and take advantage of opportunities.

    Wishing you all the best in your investing endeavors and... "May the Bulls be with You!"

    The analysis and information in this report and on our website is for informational purposes only. No part of the material presented in this report or on our websites is intended as an investment recommendation or investment advice. Neither the information nor any opinion expressed nor any Portfolio constitutes a solicitation to purchase or sell securities or any investment program. The opinions and forecasts expressed are those of the editors of Top Guns Trading and may not actually come to pass. The opinions and viewpoints regarding the future of the markets should not be construed as recommendations of any specific security nor specific investment advice. Investors should always consult an investment professional before making any investment.

    Any investment decisions must in all cases be made by the reader or by his or her investment adviser. Do NOT ever purchase any security without doing sufficient research. There is no guarantee that the investment objectives outlined will actually come to pass. All opinions expressed herein are subject to change without notice. Neither the editor, employees, nor any of their affiliates shall have any liability for any loss sustained by anyone who has relied on the information provided.

    The analysis provided is based on both technical and fundamental research and is provided as is without warranty of any kind, either expressed or implied. Although the information contained is derived from sources which are believed to be reliable, they cannot be guaranteed.

    The information contained in our websites and Top Guns Trading publications is provided by Evergreen Publishing Co. Inc. (Evergreen). One of the principals of Evergreen, Mr. David Moenning, is also President and majority shareholder of Heritage Capital Management, Inc. (HCM) a Chicago-based money management firm. HCM is registered with the U.S. Securities and Exchange Commission as an investment adviser. HCM also serves as a sub-advisor to other investment advisory firms. Evergreen is a publisher and has not registered as an investment adviser. Neither HCM nor Evergreen is registered as a broker-dealer.

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