While trading in the Indian stock market it is very important to figure out which stocks are worth investing. There are lots of underlying aspects which make one stock worthy while some are not worthy enough to invest. The following could be a few decisive factors which could help in analyzing a stock and finding out if it is worth buying or not landprime:
Good Analysis: Analyze the Company, its products and competitors are always the primary aspects to study the company before investment. The company’s current holdings, stability, past revenue and future projections are to be analyzed before buying its stock.
Product Viability: Also, study the viability of the product, competitors and market response connected to the company. This would give concept about future performance to some extent. It is also significant to study the competitors to know the market share of the company’s product.
Price of the stock: Always analyze the price, particularly with the historical price of the stock so that you will have an idea of good value buying-stocks. A Company’s revenue plays an important role, as the revenue of the company increases, the price of the share automatically increases and so does the profit. Evaluate the revenue quarter wise, where it would be easy to determine the trend of the stock.
To sum up, a prospective trader needs to discover the most updated and ideal investment plans so as to enable him to invest in the stocks and earn profit. Always try and follow the best research by going through different websites related to market. Adequate research and strong determination can help the individual to find out the best stocks where he would get to select the right stocks. The person would be able to get the optimum profit only when he is able to get the updated or genuine information of the stocks in right time. Always try to understand the correct and the significant concepts of the stock market and take good determination in buying valued stocks to earn profit.
Calculate the EPS: EPS means Earnings per share. EPS can be estimated by dividing the Company’s net profit per quarter basis by the total number of shares it holds. The resultant EPS could be used to evaluate the profits which could be earned on the shares.
Check the Dividend Payouts: Many companies return a portion of their earnings to the share-holders in the form of the dividend. This dividend is an extra amount which could be generated on the shares. If the dividend is higher, you will earn more profit. So, it is important to identify the stocks of companies which pay greater dividends.
