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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.

When looking for big money stocks, the first principle to remember is that you should follow the buying patterns of institutional investors. These investors manage money for large institutions, including cities, school districts, hospitals, and companies. Just like individual investors, institutional investors buy stocks, bonds, and mutual funds. However, capital institutional investors also bring equity purchases to the market (or remove them when they sell), which greatly impacts the appeal of that stock to individual investors. Therefore, when a multi-billion-dollar institutional investor looks at a particular company, that company's stock price will soon jump.

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.

An important factor in choosing tomorrow's winners is forecasted earning growth. There are currently stocks with fantastic growth to price/earnings ratios that institutional investors are attracted to, thus putting more buying pressure on these stocks. Since earnings momentum is slowing down for the overall stock market, earnings momentum is vital for all big money stocks. Stocks that can show strong momentum in earnings benefit from high pressure institutional buying. With stocks that are poised for big moves profits should not slow down.

A stock's growth-to-price/earnings ratio is becoming increasingly important for selecting successful stocks. This is because commodity and energy stocks have had the strongest earnings growth yet still have some of the lowest P/E ratios on Wall Street. Because of China's economic boom, a lot of the world's commodities, such as coal, copper, oil and steel are in high demand.

When selecting hot stocks in the small- to mid-cap growth sector, it's important to consider earnings surprises because additional buying pressure goes into effect when companies earn more than analysts expect. While all these factors are important to help you find big money stocks, you should also consider other things, such as your desire to improve cash flow (which often brings greater dividends), increase return on equity, and expand profit margins.