Evaluating Stocks for Investment
Learn how to use fundamental or technical analysis or a combination of both to evaluate a stock. You can also learn to do a business analysis of the company’s future prospects.
Earnings Season Is Dose of Reality for Stock Market
Earnings season is a quarterly show and tell that helps investors adjust their expectations.
Earnings season is a quarterly show and tell that helps investors adjust their expectations.
Defensive Driving for Stock Investors
The margin of error is a factor you include in your calculations for determining at what price to buy. It provides some protection against the unknown and any calculation errors.
The margin of error is a factor you include in your calculations for determining at what price to buy. It provides some protection against the unknown and any calculation errors.
Normal Stock Guidance Doesn't Apply
During extreme market conditions, normal investment guidelines do not necessarily apply. Use your best judgement and consider how much risk you are willing to accept.
During extreme market conditions, normal investment guidelines do not necessarily apply. Use your best judgement and consider how much risk you are willing to accept.
Down Market Is Wake Up Call
A down market is a good reminder that investing in stocks carries a certain amount of risk.
A down market is a good reminder that investing in stocks carries a certain amount of risk.
Cash Ratio Good Measure of Liquidity
The cash ratio tells you how easily a company can weather a difficult economy.
The cash ratio tells you how easily a company can weather a difficult economy.
Know the Difference Between Value Stocks and Cheap Stocks
When virtually all stocks appear to be bargains during a bear market, it is important to identify those stocks of value.
When virtually all stocks appear to be bargains during a bear market, it is important to identify those stocks of value.
Finding Good Stocks to Buy
One way to measure how well a company is doing involves comparing its financial ratios to peers and industry sector.
One way to measure how well a company is doing involves comparing its financial ratios to peers and industry sector.
Earnings Season Reveals Much About Stocks
Earnings reports during an economic crisis may be lower than in the past, but look for the reasons. There may be more than just a bad economy at play.
Earnings reports during an economic crisis may be lower than in the past, but look for the reasons. There may be more than just a bad economy at play.
Letting the Air Out of Inflated Markets (Stocks and Housing)
Economic crises tend to bring supply and demand back into balance by writing down inflated values of assets.
Economic crises tend to bring supply and demand back into balance by writing down inflated values of assets.
Falling Inventory Levels May Be Good for Job
Falling inventories can set the stage for a recovery since businesses need inventory to sell.
Falling inventories can set the stage for a recovery since businesses need inventory to sell.
A Little Research Can Help Uncover Opportunity
Identifying investing opportunities in a down market requires some research to help focus your selection process.
Identifying investing opportunities in a down market requires some research to help focus your selection process.
Back to Basics for Stock Investors
Many companies can make money in a good economy, but not all of them have a business model that will survive a downturn. Stock investors must look for companies that can survive a downturn.
Many companies can make money in a good economy, but not all of them have a business model that will survive a downturn. Stock investors must look for companies that can survive a downturn.
Fundamental Analysis Tools - These are the tools of fundamental analysis
Fundamental analysis relies on several tools to give investors an accurate picture of the financial health of a company and how the market values the stock.
Fundamental analysis relies on several tools to give investors an accurate picture of the financial health of a company and how the market values the stock.
Use P/E Wisely When Considering Stock Purchase
A stock's P/E is one of the most important tools investors use. Use it wisely.
A stock's P/E is one of the most important tools investors use. Use it wisely.
Smart Stock Investors Focus on Fundamentals
Bouncing stock prices don't paint an accurate picture of a company's worth. Fundamentals are still the most important consideration in evaluating a stock.
Bouncing stock prices don't paint an accurate picture of a company's worth. Fundamentals are still the most important consideration in evaluating a stock.
Fear Index Can Warn Stock Investors
The VIX is often called the fear index because is measures how concerned or uncertain investors are about the future direction of the market.
The VIX is often called the fear index because is measures how concerned or uncertain investors are about the future direction of the market.
Not all Stock Sectors are Equal
A rising or falling market does not take all stocks the same direction or at the same speed. Stock sectors are groupings of like companies.
A rising or falling market does not take all stocks the same direction or at the same speed. Stock sectors are groupings of like companies.
What is an Economic Moat and Why should Stock Investors Care
An economic moat protects a company from competitors by creating obstacles for entry into the market.
An economic moat protects a company from competitors by creating obstacles for entry into the market.
Guard Against Using Old Information when Analyzing Stocks
Much can happen to companies in a volatile market. Don't use old information to analyze a company.
Much can happen to companies in a volatile market. Don't use old information to analyze a company.
Avoiding Companies with No Earnings is Good Idea
It is easy to become excited about a new idea or technology, but investing in companies with no history of making money is risky.
It is easy to become excited about a new idea or technology, but investing in companies with no history of making money is risky.
A Good Company with a Bad P/E
A good company can be a risky investment if you pay too much for it. The P/E is a good tool for a rough idea about a stock's value.
A good company can be a risky investment if you pay too much for it. The P/E is a good tool for a rough idea about a stock's value.
Why Free Cash Flow is so Important
Free cash flow is one of the most important numbers you need to know about a stock. It will help you determine a fair price for the company's stock.
Free cash flow is one of the most important numbers you need to know about a stock. It will help you determine a fair price for the company's stock.
Earnings Per Share - How to Calculate EPS
Earnings per share or EPS is one way to compare companies, but it does not tell you about market value.
Earnings per share or EPS is one way to compare companies, but it does not tell you about market value.
ROA is a Leading Measure of Company's Efficiency
Return on Assets is an important number for investors to know when considering a stock. It provides a measure of efficiency.
Return on Assets is an important number for investors to know when considering a stock. It provides a measure of efficiency.
Picking Stocks begins with Assessment of Need
The first step in picking a stock is to determine where you need to diversify your portfolio.
The first step in picking a stock is to determine where you need to diversify your portfolio.
Be Careful of Investing in Safe Stocks
Investors often turn to safe stock sectors such as utilities during difficult economic times, but not every company in safe sectors are good investments.
Investors often turn to safe stock sectors such as utilities during difficult economic times, but not every company in safe sectors are good investments.
No Bad Time to Invest in Growth Stocks
You can find growth stocks in almost any market, but you may have to look harder in some markets than others.
You can find growth stocks in almost any market, but you may have to look harder in some markets than others.
Look for Stocks with Earnings Growth
Companies that show a consistent growth in earnings make attractive investment candidates for stock investors.
Companies that show a consistent growth in earnings make attractive investment candidates for stock investors.
Use R&D Spending in Evaluating Stock
Research and development is important to every company, since that's where new products and services are created.
Research and development is important to every company, since that's where new products and services are created.
Price Earnings Ratio - How P/E is Calculated
The Price to Earnings Ratio is one of the most important numbers analysts look at to understand how the market values a stock.
The Price to Earnings Ratio is one of the most important numbers analysts look at to understand how the market values a stock.
Beating the Stock Market - Why you may want to Judge your Stock Investments Differently
Beating the market with your stock investments may not be the best goal for your portfolio.
Beating the market with your stock investments may not be the best goal for your portfolio.
PEG - How PEG is Calculated
PEG ratio provides investors a way to calculate how much future earnings growth is going to cost based on the stock's P/E and projected earnings growth rate.
PEG ratio provides investors a way to calculate how much future earnings growth is going to cost based on the stock's P/E and projected earnings growth rate.
Price to Sales Ratio - How to Calculate the P/S
The Price to Sales ratio is a tool for evaluating companies with no earnings that looks at how the market values the company's sales.
The Price to Sales ratio is a tool for evaluating companies with no earnings that looks at how the market values the company's sales.
Price to Book Ratio - How to calculate P/B
The Price to Book ratio is a way to determine how the market values the book value of a company based on the current market price.
The Price to Book ratio is a way to determine how the market values the book value of a company based on the current market price.
Dividend Payout Ratio - How to calculate dividend payout ratio
The dividend payout ratio looks at what percentage of a company's earnings are paid out to shareholders in the form of dividends.
The dividend payout ratio looks at what percentage of a company's earnings are paid out to shareholders in the form of dividends.
Use these Simple Calculations to Determine Return on Your Investments
You can use a few simple calculations to determine how your investments are performing and what they are returning.
You can use a few simple calculations to determine how your investments are performing and what they are returning.
Dividend Yield - How to Calculate Dividend Yield
Dividend Yield tells you what percentage return a company pays out in the form of dividends.
Dividend Yield tells you what percentage return a company pays out in the form of dividends.
Watch Debt when Evaluating Stocks - Debt should Figure in your Evaluation of an Stock
Companies with heavy debt loads can be at risk in markets where interest rates are rising. Here's how to evaluate stocks for debt.
Companies with heavy debt loads can be at risk in markets where interest rates are rising. Here's how to evaluate stocks for debt.
Calculating Annual Compound Growth Rate of your Stock Investments
The Annual Compound Growth Rate of your investments is important because it takes into account the time value of money as well as price changes.
The Annual Compound Growth Rate of your investments is important because it takes into account the time value of money as well as price changes.
Tools Help You Evaluate Stocks for Debt - Too much Debt makes Stocks Vulnerable
Too much debt can make a company vulnerable to rising interest rates. Here are two tools to help you evaluate stocks for too much debt.
Too much debt can make a company vulnerable to rising interest rates. Here are two tools to help you evaluate stocks for too much debt.
Book Value - How to Calculate Book Value
Book value of a company is the assets minus liabilities.
Book value of a company is the assets minus liabilities.
Three Influences on Stock Prices - Fundamentals, Sectors, and Markets Affect Stock Prices
There are three main influences on a stock's price: business fundamentals, its sector or industry, and market conditions.
There are three main influences on a stock's price: business fundamentals, its sector or industry, and market conditions.
What makes a Great Stock - Three Characteristics of a Great Company
Great stocks and great companies have several traits that distinguish them from the rest of the pack.
Great stocks and great companies have several traits that distinguish them from the rest of the pack.
Short-Interest Ratio can Help you Evaluate Stocks
The short-interest ratio tells you whether your stock is an active target of short sellers
The short-interest ratio tells you whether your stock is an active target of short sellers
Return on Equity - How to Calculate Return on Equity
Return on equity tells investors how efficiently a company is using its assets to generate earnings.
Return on equity tells investors how efficiently a company is using its assets to generate earnings.
Using Cash Flow to Value Stocks - The Importance of Cash Flow Analysis
Cash is vital to a company's health and its ability to generate cash can be used to see if the market under or over-values the stock. For many, these metrics are better than P/E for that purpose.
Cash is vital to a company's health and its ability to generate cash can be used to see if the market under or over-values the stock. For many, these metrics are better than P/E for that purpose.
Why Per-Share Price is Not Important
Market cap is more important than per-share price because market cap tells you the value of the company.
Market cap is more important than per-share price because market cap tells you the value of the company.
Advance/Decline Numbers - Understanding Advance/Decline Numbers and How to Use them
Advance/Decline numbers give you a feel for the "breadth" of the market and provide another piece of information in addition to indexes.
Advance/Decline numbers give you a feel for the "breadth" of the market and provide another piece of information in addition to indexes.
Checking a Stock's Relative Strength - Why a Stock's Relative Strength is Important
Relative strength measures a stock's performance against the rest of the market and is helpful in evaluating investments.
Relative strength measures a stock's performance against the rest of the market and is helpful in evaluating investments.
It's the Earnings
Earnings are the single most important factor in stock evaluation for many investors. Although there are other factors to consider, earnings must be near or at the top of every investor's list of important checkpoints.
Earnings are the single most important factor in stock evaluation for many investors. Although there are other factors to consider, earnings must be near or at the top of every investor's list of important checkpoints.
Institutional Ownership of Stocks - How Important is Institutional Ownership of Stocks?
The actions of the institutional owners of a stock can tell you something about the quality of the stock - sometimes you can believe it.
The actions of the institutional owners of a stock can tell you something about the quality of the stock - sometimes you can believe it.
Cash Flow is Important in Evaluating Stocks - Investors should use Cash Flow as Stock Picking Tool
Cash flow is an important tool for investors in evaluating stocks for investment.
Cash flow is an important tool for investors in evaluating stocks for investment.
Interest Rates Important - Stock Valuations and Interest Rates are Linked
Changes in interest rates effect stock valuations in a fundamental way by changing the required return.
Changes in interest rates effect stock valuations in a fundamental way by changing the required return.
Understanding Stock's Beta - How Beta Ratio is Used and Misused
A stock's beta ratio is a useful tool for measuring risk, but it does have some serious limitations.
A stock's beta ratio is a useful tool for measuring risk, but it does have some serious limitations.
Dividend Yield Trap - Watch Out for Stocks with High Dividend Yields
Stocks with high dividend yields may be a smart buy, but they may also be a trap. Always check the other fundamentals before making an investment decision.
Stocks with high dividend yields may be a smart buy, but they may also be a trap. Always check the other fundamentals before making an investment decision.
Using Price Sales Ratio - How to Value a Stock Using the Sales Price Ratio
The sales/price ratio provides a metric for measuring the relative value of a stock's price when compared to industry peers. It is used along with price/earnings ratio.
The sales/price ratio provides a metric for measuring the relative value of a stock's price when compared to industry peers. It is used along with price/earnings ratio.
Evaluating Stocks by Measuring Management Effectiveness
How well is management making use of the company's resources? The answer can tell you a lot about whether you want to own the stock or not.
How well is management making use of the company's resources? The answer can tell you a lot about whether you want to own the stock or not.
Cash is King - Why Operating Cash Flow is an Important Tool
Operating cash flow measures how cash is generated in a company and whether the company is taking in more or less than it is spending.
Operating cash flow measures how cash is generated in a company and whether the company is taking in more or less than it is spending.
Value Line
Value Line has been compiling and publishing information of companies for many years and they have successfully made the transition to the Internet. Much of the information is only available to subscribers, but if you are a serious investor it's worth looking into a subscription.
Value Line has been compiling and publishing information of companies for many years and they have successfully made the transition to the Internet. Much of the information is only available to subscribers, but if you are a serious investor it's worth looking into a subscription.
SEC Filings & Forms (EDGAR)
Anyone interested in investing in stocks should get to know EDGAR. EDGAR is the electronic access through the SEC to all the forms and reports companies must file. It's a great way to check up on a company without waiting for your broker or the company to send you the information (annual reports, etc.) you need.
Anyone interested in investing in stocks should get to know EDGAR. EDGAR is the electronic access through the SEC to all the forms and reports companies must file. It's a great way to check up on a company without waiting for your broker or the company to send you the information (annual reports, etc.) you need.
SmartMoney University
SmartMoney has a helpful portion of its site devoted to articles on a variety of investing topics, including strategic investing.
SmartMoney has a helpful portion of its site devoted to articles on a variety of investing topics, including strategic investing.
Morningstar: Stocks, Stock Quotes and Stock Market Research
Click on the Investing Classroon link in the lower right for information on understanding some of the financial reports associated with public companies.
Click on the Investing Classroon link in the lower right for information on understanding some of the financial reports associated with public companies.