The #1 Variable that Wall Street Overlooksby Arne Alsin
I think the number one variable in the investing equation that Wall Street over looks is margin leverage. Most investors focus on leverage from sales growth, which is relatively easy to figure out and everybody looks at that. But in the great organic growth stories, a lot of the share price upside has come from these companies increasing operating and net margins as they grow. Margin leverage tends to go along with a company having an enduring competitive moat.