How Do You Pick A Quality Stock For Investment?
There are certain characteristics that identify quality stocks for investment purposes. This entry discusses some of the factors that may be used to identify winning stocks. • A good place to start when looking for a stock to purchase is the list of top percentage gainers for that particular day. These lists are found on USA Today, CNN.Money, and elsewhere. • From this list, emphasize stocks close to or higher than $10/share. Stocks much under $10 are generally of lower quality. Although one can purchase more shares of a lower-priced stock, that doesn’t necessarily mean that your chances of a successful investment are greater; in fact they may be reduced with so-called “penny” stocks. • Check the latest quarter earnings report. These are easily found on the Yahoo Finance website. After entering a stock symbol, check for “Headlines” along the left side of the page. Start with current news and go back looking for the most recent earnings report. Insist on revenue growth and earnings grow
