What’s the most important thing you look for when researching a stock and finding a winner? What are the things that a stock must have in order for you to own it? Let me know below, i’m super curious!
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263 Comments
Nilkanth Patel
@theinvestingenthusiast · 1yrEdited
I use the Globe and Mail stock screener (https://www.theglobeandmail.com/investing/markets/stocks/screener/) for filtering out stocks according to the criteria I think are important. Step 1: Filtering Stocks Using a Stock Screener Criteria a) Market Cap: Medium-Mega b) Annual Sales: 150 million and above c) Annual net income: 50 Million and above d) 5-year return: 10% or above e) 5-year revenue growth: 10% or above f) 5-year earnings growth: 10% or above g) EPS: should be positive and increasing over the years. h) P/B ratio: usually between 0 and 2 (II prefer something less than 1, but anything above 1 is fine). I) Return on Equity: 15% or above j) Debt-to-Equity Ratio: 0-1.5 k) P/E ratio: I compare it with peers and sector PE. l) Total Assets > Total Liabilities with a Significant Amount m) Net income and free cash flow should be positive and increasing over the years. Step 2: Look for companies near their 52-week low price target. Step 3: After this step, I get 10–20 companies. Further on, I go and research more about their business, income stream, executives, and analyse the competition. The website I have been using for analysing competitors is https://www.marketbeat.com/. A very good website that provides comprehensive information about a company's competitiveness and compares it to its peers STEP 4: Lastly, I potentially see insider trades and try to look for insider buys within the last 3–6 months. Lastly, from the list I get after my research, I try to go for different sectors or industries for diversification. Inspired from coffee can style investing. From my blossom post back in 2023-2024.
Kyle Jones
@investwithkyle · 10mo
A stock must be purchased by Nancy Pelosi in order for me to own it individually. She will guarantee it’s future
Jacob B
@jacobb · 1yr
Competitive business advantage with low long term disruption risk (or during the time I plan to invest), secular growth trends, and a great valuation. Pretty much sums it up.
Michael Halloran
@halloran · 1yrEdited
96.3 % net profit margin or bust
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