Picking a Stock Guidance
Investing in Interval Funds
Interval funds are investment companies that have been organized for the purpose of investing in securities. If you are thinking of investing in interval funds, you should always do your research beforehand. This article will tell you what else you need to know.
Funds of Hedge Funds
Funds of hedge funds are relatively new to the investment market. Read the comparison between a fund of hedge funds vs. a hedge fund and find out the pros and cons of this investment vehicle.
Investing in Hedge Funds: Pros and Cons
Just like all other investment instruments, hedge funds have advantages and disadvantages. This article points the pros and cons of hedge funds.
Stock Analyst Recommendations - Should We Trust Them?
Investors should have in mind that certain conflicts of interest might exist which may create pressure on a stock analyst's objectivity and independence.
Price to Sales Ratio (PSR) Explanation
There are many tools you can use in order to valuate a stock. One of them is the price/sales ratio (PSR).
Value - Growth Stocks Comparison
Depending on your long term financial goals you can choose either value stocks or growth stocks or even the both of them.
Small Cap Stocks Opportunities and Risks
Small cap stocks can be both extremely beneficial in financial terms and disastrous to your hard earned money. Even though small cap stocks carry a great degree of risk, you might consider investing in them.
Earnings Estimates and Stock Selection
Most investors tend to analyze past stock performance when they make decisions regarding an investment. However, stock prices are typically determined by the earnings a company will generate in the future.
How to Select a Winning Stock from a 52-Week List
Many investors looking for a winning stock face the dilemma of whether to buy a stock that is part of the top 52-week high list or a stock that is part of the 52-week low list.
Identifying a Value Stock
If you are a value investor there are some important financial numbers and business fundamentals you should look at when examining a potential value candidate.
Value Stocks vs Growth Stocks
Growth and value stocks are commonly used terms related to stock investing. The following article provides clarification on the meaning and characteristics of these stocks so that you are facilitated in your choice of each of them.
Per-Share Price vs Market Cap
Many beginning investors consider the per-share price of a stock as an indicator of its value. However, in order to determine the value of a company, we should identify its market capitalization (also known as market cap).
Non-Financial Characteristics of a Successful Stock
When you make an evaluation of a particular business, the financial indicators are only one part of the picture. There are many other factors and this article aims to introduce some of the traits a successful business should possess.
Relative Strength Indicator
Relative strength represents an indicator that assists investors in their stock picking. Additionally, it helps them evaluate the investments they hold relative to other investments.
Calculate Return on Investment
In order to better understand the return you get from your stocks, you need to master several formulas. The formulas will help you calculate the returns on your investment.
Cash Flow Valuation
The valuation of a stock includes the application of many criteria. One of them most often used by investors is cash flow.
Price to Earnings Ratio Calculation
When evaluating a stock, most investors refer to the Price to Earnings (P/E) ratio in order to make more reasonable investment decisions. It is the ratio most often used by investor when it comes to evaluating stocks.
Price to Sales Ratio Calculation
Evaluating the stocks of a particular company is required before you jump with both legs into investing with it. The Price to Sales (P/S) ratio comes to assistance when you need a measurement of the worthiness of young companies just coming on the market .
The Importance of Earnings in Evaluating Stocks
When deciding on the purchase of a stock, an evaluation of the latter is required in order to determine whether its price accurately reflects the value of the company. Stock evaluation involves the examination of the earnings that the company generates for its shareholders.
Determining the Right Stock Price
Many times the market doesn’t price a stock in a realistic way. One way to find whether the market has undervalued or overvalued a particular stock is by using the price/sales ratio.
Company Valuation Methods - Debt Evaluation Formulas
When evaluating the possibility of purchasing a particular stock, debt of the company may represent a factor that can influence your decision.
Company Valuation Methods - Management Effectiveness Ratios
Before you purchase a stock, you should make an evaluation of it using many different criteria. One of them concerns the management of the company and its way of using the company’s resources.
Company Valuation Methods - Debt Evaluating
One of the factors you should consider when evaluating a stock is interest rates. This is especially important if the company from which you possess stocks has a debt which it should cover.
Institutional Investors and Their Influence on Stock Trading
Before you decide on the purchase of a particular stock it may be useful to observe the attitude of large shareholders toward this stock. See whether they are buying or selling since their actions may reflect on the price of the stock.
Price to Cash Flow Ratio vs Free Cash Flow
Both free cash flow and price to cash flow ratio present a useful way to find out the valuation the market assigns to the stocks of a particular company.
Simple Return vs Compound Annual Growth Rate Formula
The simple return and compound annual growth rate formulas will help you calculate the returns on your investment. This will further facilitate the identification of your current position as compared to where you should be regarding your financial goals.
PEG Ratio Calculation
A major characteristic of the stock market is that it is directed toward the future performance and projections. Aside from the P/E for measuring the future earnings growth is the PEG ratio.
Earnings per Share EPS Calculation
When deciding on the investment in certain stocks, many times investors are facing the challenge of comparing stocks from different industries and types. A useful tool for comparison can be earnings per share or EPS.
How to Benefit from Short Sellers
Use short-interest ratio and the number of short sellers to evaluate the stocks and their future price movements.
Return on Equity Calculation and Drawbacks
A measurement for evaluating the efficient use of resources by a company in producing earnings for its shareholders is the Return on Equity (ROE). Many investors successfully apply ROE as a tool for finding competitively advantageous companies.
Price to Book Ratio Calculation
Value investors search for companies that have been overlooked by the market. When deciding on a particular company, value investors look at such indicators as earnings growth, price to book ratio (P/B) and several others.
Stock Valuations - Key Interest Rates Relationship
The valuation of a stock, and particularly its risk-free rate, is directly related to the key interest rates that the Fed adjusts at its meetings. This relationship illustrates the potential expectations regarding the investment in a particular stock.
Operating Cash Flow Implications
When deciding on the investment in a particular company you should not overlook a company’s cash flow. Investing in a company with a negative OCF may be a risky enterprise.
Dividend Yield Explanation
Dividend investors, searching for a stock that will return them stable current income, should use Dividend Yield in their comparison of the different stocks available on the market, which fall under the investor’s consideration.
Dividend Payout Ratio Calculation
The meaning behind Dividend payout ratio (DPR) is the money that is paid out in the form of dividends by the company to its shareholders. Some financial experts say it is an important measurement, whereas others strongly disagree.
Book Value Explanation
When deciding on the investment in a particular company through the purchase of stocks of the company, many investors refer to its book value as one of the components that guide their decision regarding the investment.
Dividend Yield Calculation and Drawbacks
In order to evaluate whether a particular stock represents a good investment in dividend terms, investors often use dividend yield as a measurement. It represents the percentage that the stock returns as compared to its price.
Cyclical vs Non-Cyclical Stocks
In order to achieve a balanced portfolio of stocks both cyclical and non-cyclical stocks should be included. This should be done in order to be able to better face the changing cycles of the economy and the market as a whole.
Pick the Best Stock Type for You
Stocks carry their risks in terms of volatile prices, but over the long term they bring returns offered by no other investment solution and it is only a matter of the right stock pick for your needs.
Stock Beta Value
Market risk and volatility of investing in stocks is commonly measured by what is called beta. It is a tool that facilitates investors’ choices regarding the type of investment that best suites their risk tolerance.