Every investor wants to know about the newest big money stocks, but how does someone go about finding those gems? While you need not be a financial expert to understand how to pick stocks on the rise, there are several financial factors that will lead to stocks that are set to soar with big moves.

There most important thing in finding big money stocks is to keep track of the buying patterns of institutional investors. These are the people who manage large portfolios of money for major corporations and places such as cities, school systems, or hospitals. Their investments are done in the same manner as individual investors, they buy stocks, mutual funds, and bonds, but they have such a large amount of capital to invest that their purchase, or sale, of a particular equity have a large impact on how attractive an individual investment is. Thus, if some institutional investor invests in a company then it is likely that you will soon see a jump in price.

Hot stocks are also typically supported by reputable companies with solid balance sheets. There are several financial aspects that investors are urged to investigate for big money stocks. Strong sales growth is absolutely crucial for stocks that will win, as Wall Street has a significant bias toward strong sales growth. This means that even if a company releases earnings that analysts are less than happy with, they stock is more likely to stay in good standing provided the company's sales growth figures are strong.

Another major consideration in picking winning stocks is estimating their earnings for the next few quarters. Stocks with extremely high growth-to-PE ratios are the most likely to make big moves in the near future. Major institutions that are looking to invest use these criteria to make their selections. For any big money stocks, it is important to research earnings momentum, even more so when earnings growth overall is declining. That makes it even more likely that stocks in companies with rapid earnings growth will move up strongly.

One aspect of a stock that is increasing in importance with regards to successful stock selection is the stock's growth-to-price/earnings ratio. Some of the strongest earnings growths can be found in energy and commodity stocks. Many of these companies also have very low P/E ratios. Commodities that are used in industrial production are increasing in demand in places that are experiencing economic booms, such as China.

Another way to select hot stocks in the small and mid-cap growth universe is to look for earnings surprises; when earnings come in above the analyst consensus, the stock attracts buyers and there is upward price pressure. In addition to all of these ways of finding big money stocks, fundamental factors like increasing cash flow (which can signal a dividend increase), return on equity, and improving profit margins are also important to stock selection.

There are various indications whether a stock will hit big: institutional investors who show big moves in certain stocks which could result to the price of the stock rising quickly; hot stocks are also supported by companies with solid balance sheets; stocks with extremely high growth-to-PE ratios are also most likely to become big money stocks. The last indicator mentioned is most likely seen in commodity and energy stocks. It is also important to consider factors such as earnings surprises, as well as one's own consideration, like profit margins, cash flow and return on equity.