You may be asking yourself nicely how to find good stocks? Traditional bellwether companies have recently fallen on tough times. Several have missed earnings estimates while others have cut their long standing disputes. In some severe cases, a few of these companies have even declared bankruptcy. What is a long term investor to do?
In the past, smart investors understood that financially stable stable revenue producing stocks were a value. They would build a diversified portfolio around these securities. Many invested in these types of stocks as part of their retirement savings. Unfortunately, many of these same investors have seen any returns wiped out along with any plans on early retirement.
While there are several companies who have seen their share prices come crashing down, there are still some really great companies out there which would make good investments. Here are 3 proven methods to use so that you can figure out how to find good stocks.
- Dividend Stocks – Identifying companies that consistently raise their dividends is a good list to start from. Be careful not to solely choose a stock just because they have a history of raising their disputes. You must first complete additional due diligence to make sure a company's current financial state agreements continued performance.
- Long Term Growth – Run a stock screen looking for companies with projected long term growth that exceeds it's peers. Standout companies should have optimistic long term growth projections to warrant a purchase. Keep in mind not to use this screen as your only basis for making a purchase.
- Financial Statements – If you want to know how to find good stocks, another option is to look at financial statements. Keep track of a company's quarterly financial statements and pay attention to the fine details. Often times potential red flags can be identified in these statements. You should also make it a good practice to listen to the quarterly investor conference calls to pick up good tips.
Stock investing does not have to be a difficult task. While the market has seen historical volatility and declining share prices, there is always a place to invest your money. Using a collection of the proven methods above can put you well on your way to identifying how to find good stocks! Combining several due diligent steps in your stock selection is key to your success and if you will make money or not.