stock analysis

Evaluate a Company by Relating Its Stock Price to Earnings

in Investment
Stock price manager

Master Price-to-Earnings Ratio

By analyzing the price-to-earnings ratio, investors can evaluate a company’s shares within the context of actual income the company has generated over a certain period.

One of the most popular tools that analysts use to determine whether a company shares are overvalued or undervalued is the Price-to-Earnings (P/E) ratio.

The reason why is that investors are very interested in knowing what is the present value of their future returns.

In other words, investors can evaluate a stock by determining how much they are willing to pay today for the company’s expected earnings in the future. Keep Reading

Pure Price/Volume Techniques

in Investment
Stock Charts

Much Can Be Learned from Stock Price and Volume Movements

In this article there will be talk of the Dow Theory, other technical indicators, as well as the basics of charting.

While it may seem technical analysts are fond of analyzing and interpreting only price patterns, the majority of technical trading rules consider both price shifts and shifts in the corresponding trading volumes.

It only makes sense to see a confirmation of a trading rule in actual buying and selling of a security in sufficient volumes. Keep Reading

Investment Management

in Investment
Portfolio Management

Wealth Management

Before investing it is important to consider how efficient the investor believes the market is.

When picking a portfolio manager an investor should have a clear idea of the different philosophies of managers.

What the individual investor believes about market efficiency may determine if they hire a technical analyst or a fundamental analyst or maybe even go without either and just invest in an index fund. Keep Reading

Exchange Traded Funds (ETFs)

in Investment
ETF indexes

A Lower Cost Way to Reduce Investment Risks

Both mutual funds and Exchange Traded Funds (ETFs) can help you broaden your investment diversification, but ETFs may be a cheaper means to achieve strong returns.

Most ETFs are designed to track (or mimic) a major index, like the S&P 500. Shares generally rise and fall in value along with the index. Some ETFs track sector-specific indexes, such as utility company stocks, or high-tech stocks.

Some ETFs allow you to participate in the commodities markets, including oil and gas or gold, without having to take delivery of the commodity itself, which could be hard on your mailbox. Keep Reading

Stock Analysts: Should Investors Believe Third Party Advice?

in Investment
Dow Jones Index

It is often said that people who are looking for stock advice are only asking to be fleeced.

Internet searches, newsletter subscriptions are inexpensive sources of stock recommendations. Keep Reading

Go to Top