Checklist Item #1: Analysts Revisions

Analysts are paid to estimate a company's earnings outlook. Make a wrong estimate that costs investors money and as an analyst, you could lose your job.

It's this do or die environment that makes analyst revisions an important indicator of future success. If a number of Wall Street analysts start to move their forecasts higher, it's a good bet that the stock will outperform expectations and deliver market-beating returns for investors.

That's why one of my eight fundamental factors to watch is Analysts Earnings Revisions.  My FREE Portfolio Grader service gives each stock a grade for this important checklist item. If revisions are going up, the stock grades high. If they're going down, the grade will suffer.

Let's take a look at a few stocks that rank solid A grades in the fundamental category of Analysts Earnings Revisions, and when they report earnings:

• Aeropostale (ARO) - Aug. 20
• Lincoln Educational Services (LINC) - Aug. 5
• Dorman Products (DORM) - TBA

Now let's look at those stocks that grade as Fs when it comes to analysts estimates:

• GeoMet (GMET) - Aug. 10
• Boots & Coots Inc. (WEL) - Aug. 10
• Liz Claiborne (LIZ) - TBA

Look for updated earnings results from these and our other stocks in Thursday's installment of Quick-Hit Earnings Trades. And remember, you can check to see how your stocks rank on Analysts Earnings Revisions by visiting Portfolio Grader today–it's FREE.

To read more about how to use fundamental factors to pick market-beating stocks, check out my 'Quick-Hit Earnings Trades' series.