A large TAM alone isn't evidence of a strong business, but in combination with other metrics like revenue growth, it can point to a potential juggernaut. Other businesses, meanwhile, are more focused and won't have as much room to grow. Some categories, like e-commerce, tend to have huge TAMs, as these companies are disrupting physical retail, a multitrillon-dollar industry.

Often, companies cite their total addressable market, which could be in the tens of billions, the hundreds of billions, or even the trillions, to show how big their growth opportunity is. Total addressable market (TAM): It's also important to consider how big a company can become.While underlying performance in the business is ultimately more important than the movement in the stock price, past price appreciation is an easy quality to look for and recognize. Alternatively, stocks that have languished for several years or mirrored the market are less likely to deliver monster growth. Past price appreciation:В Investors generally respond to strong businesses by sending the stock price up past stock price appreciation is a good sign of a company that has what it takes to outperform over the long term.You can find some recent examples of the latter phenomenon, like Groupon and Blue Apron. If a company's revenue growth is decelerating, that's a sign that either its business is rapidly maturing or the industry was based on a fad. Generally investors should look for a company with at least 20% revenue growth, which often demonstrates disruptive potential, and the ability to sustain that growth. Revenue growth:В Of all the ways of measuring a business, revenue growth is probably the most important for finding big potential winners.

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