Choosing good stocks to invest in today can be challenging. Sometimes, investors seek the advice of a financial counselor, investment banker, stock analyst and stock broker. But for smart investors, they can find some ways to make sound stock investing decisions on their own.
But the question is, are there any good stocks to invest in these days that can yield significant great returns? Well, Yes. There are great stocks to buy that can provide both short term and long term gains.
Investing in the stock market is like gambling if you invest your money blindly. But if you know how to look for signs of good stocks to invest in, you could bag a lot of winning money from stocks.
Before buying some shares of a company, there are fundamental things you should look at to see if the company that you are about to buy is a good buy.
Look for company with consistent earnings growth
A company with a consistent earnings growth and a great earnings growth projection is often a great buy. Profitable companies that always post improved revenues year-on-year rarely resort to other means of raising capital for their operations and planned expansions. Any company with good and steady earnings will be one that also has steady growth. However, if their debts outweigh their assets, stay away.
Selecting companies which consistently perform well in their return on equity will mean you're choosing stocks that have a stronger potential of returning a profit for you.
Look for company that Provices Premium Product or Service
Those companies that produce excellent products or servivces are able to command higher prices in the retail market, making their stock more viable in both the short and long-term.
You are not looking at the current monetary value of the stock, but the real significance of the products produced by the company in which the stock originates. Those companies that produce products or provide services that are of innate and intrinsic value are the ones that will perform better over the course of time. If the company performs well, their stock will too, making it a good investment.
Look the earnings per share of a company’s stocks
The earnings per share of a company's portfolio also tell you which stocks are sound investments. When a company's earnings per share are consistently high, showing strong numbers for lengthy periods of time, then stock in the firm may be a good choice. It is a strong indicator of the company's solid placement within their market niche, and can predict future success as well.
Look for company that has a strong institutional support
Look for a company that has a strong institutional (banks and other investment companies) support of at least 50% or more. Banks do their research very well so you can be assured that this company is solid.
Look for the niche
If a company is a market pioneer and leader with very little to no competition and has a good command of its niche, say the budget air travel business, it's probably a good stock buy. A niche company could command higher stock prices as they cater to a very specific group of loyal customers, and most especially, their industry has very few players to compete with.
Look for company where its employees buy stocks
Most often, when a publicly traded company's officers and staff invest in their very own, it's a good hint that its stock price could improve over time. Why is this so? It's a sign of employee confidence that the company's future is going to be bright and promising.
Look for undervalued stocks
Smart stock investors, look for stocks that are priced very low. They purchase undervalued stocks for they know that they will be able to profit with smaller stock price margins.
Undervalued stocks can be priced well below their value within the stock market. It may take the market some time to realize that the price should be adjusted higher than the current price. So, smart stock investor will gain the greatest return when they sell their stocks.
These are just plain fundamentals to look for good stocks to invest in. It's better to look for these signs and use your own judgment than to listen to market hype and lost your hard-earned money.
