Articles Index - page 2
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.
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.
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.
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.
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.
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.
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.
Picking Stocks begins with Assessment of Need
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.
What are Traits of a Great Stock?
Great stocks and great companies have several traits that distinguish them from the rest of the pack.
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.
Short-Interest Ratio can Help you Evaluate Stocks
The short-interest ratio tells you whether your stock is an active target of short sellers
For Stocks, Happiness is a Positive Cash Flow
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.
Calculating Compound Annual Growth Rates of 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.
Look for Stocks with Earnings Growth
Companies that show a consistent growth in earnings make attractive investment candidates for stock investors.
Understanding Price to Earnings Ratio
The Price to Earnings Ratio is one of the most important numbers analysts look at to understand how the market values a stock.
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.
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.
Three Main Influences on Stock Prices
There are three main influences on a stock's price: business fundamentals, its sector or industry, and market conditions.
Is Beating the Market a Worthy Goal for your Stock Investments?
Beating the market with your stock investments may not be the best goal for your portfolio.
Tools to Help 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.
Check on Institutional Ownership Before Buying Stock
The actions of the institutional owners of a stock can tell you something about the quality of the stock - sometimes you can believe it.
Use Cash Flow to Evaluate Stocks
Cash flow is an important tool for investors in evaluating stocks for investment.
Cash Flow is Better than P/E
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.
Using Relative Strength in Stock Selection
Relative strength measures a stock's performance against the rest of the market and is helpful in evaluating investments.