If you're like the majority of stock market investors you have struggled with finding the very best stocks to invest in.
There are numerous ways to find the best stocks to invest in. But first you need to decide what method works best for you.
Basically there are two main forms of stock market investing
1. Investing in growth stocks
2. Investing in value stocks
Growth stocks are companies which are growing fast in earnings. There are always a lot of advanced and medical growth stocks.
Value stocks are stocks which are undervalued since they trade at a cheap set alongside the company's fundamentals (i.e. earnings, dividends, sales etc...)
Growth stocks generally will fatten your banking account faster but there's more risk whereas value stocks will generally grow at a slower more sustainable pace but probably won't offer you ulcers.
Here's what some investors look for in a growth stock (based on my knowledge of the National Association of Investors Corporation (NAIC) criteria): https://www.scamrisk.com/best-way-to-invest-5k/
1. Strong Earnings Growth - either quarter to quarter or year over year
2. Strong Forward Earnings Growth - analysts estimate what earnings will undoubtedly be for another quarter or year, when they estimate growth that's a plus.
3. Profit margins - you'd prefer the organization to be making a considerable amount of profit to sustain further growth
4. Return On Equity (ROE) - look for growth in ROE or a reliable ROE
5. Doubling in 5 years or less - you'd choose the stock to double in 5 years - look at what the analysts estimate for price potential.
Also here's what some value investors look for:
1. Shares price below intrinsic value
2. Low Price to Earnings (P/E) ratios
3. Price to Earnings Growth (PEG) ratio below 1 is good
4. Stock price is less than tangible book value
5. A debt to equity ratio below 1
6. The company's assets should be much more than the company's liabilities by at the least an issue of 2
7. Dividend Yield within 1/3 of the amount of the AAA bond yield
8. Earnings growth of at the least 7% a year for yesteryear 10 years
You will find a variety of alternative methods to find the best stock to purchase but this will offer you a starting point.