📌 How To Research A Good Stock To Invest In ❗ How To Find Good Stocks 📌

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The best way to research a stock to invest in the stock market. This is every step I take to find a good stock to buy in the stock market. Before you invest in a stock, you have to analyse that stock and do as much research as you can. Step 1, research the stock of interest. We can start by going to Wikipedia and looking up your stock. Using Apple as an example, we see they sell hardware in Iphones and software in Ios and Itunes. We can also go to their website to see how well the company is run. For more advanced investors in the stock market, you can research their 10k, which gives you an in depth summary about that stock. Step 2, valuing the stock. A simple way to value a stock is using a few ratios. The price to earnings ratio for profits, forward price to earnings ratio for future profits, price to sales ratio for revenue, price to book ratio for money in their books, and debt to equity ratio to see how much debt they have. You’ll want to compare their values and ratios to a few similar companies. For Apple, we can compare them to Microsoft, Facebook, and Amazon. Step 3, looking at past earnings. An earnings report tells us how much money the company is making. We want a consistent growth in revenue and profits. An increase of 30% year over year might increase the stock price by 30% too. Step 4, looking at current events and news surrounding the stock. Apple just released some new hardware in Iphones, we can do research to see if they have good reviews. You’ll want to get the general consensus of a company’s recent events, make sure they’re good news. This is everything you need to pick a good stock. Do as much research as you can because knowing more than the next investor gives you a huge edge in the stock market.

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