If you're similar to stock market investors you have struggled with finding the best stocks to invest in.
There are numerous ways to find a very good stocks to invest in. But first you will need to decide what method is most effective for you.
Basically you can find two main kinds of stock market investing
1. Purchasing growth stocks
2. Purchasing value stocks
Growth stocks are companies that are growing fast in earnings. There are certainly a lot of hi-tech and medical growth stocks.
Value stocks are stocks that are undervalued because they trade at a cheap compared to the company's fundamentals (i.e. earnings, dividends, sales etc...)
Growth stocks generally will fatten your banking account faster but there is more risk whereas value stocks will generally grow at a slower more sustainable pace but probably won't offer you ulcers.
Here's what some investors search for in a growth stock (based on my comprehension of the National Association of Investors Corporation (NAIC) criteria):
1. Strong Earnings Growth - either quarter to quarter or year over year
2. Strong Forward Earnings Growth - analysts estimate what earnings is likely to be for another quarter or year, should they estimate growth that's a plus.
3. Profit margins - you'd prefer the business to be making a considerable amount of profit to sustain further growth
4. Return On Equity (ROE) - search for growth in ROE or a reliable ROE
5. Doubling in 5 years or less - you'd prefer the stock to double in 5 years - look at what the analysts estimate for price potential.
Also here's what some value investors search for: https://www.scamrisk.com/best-way-to-invest-5k/
1. Shares price below intrinsic value
2. Low Price to Earnings (P/E) ratios
3. Price to Earnings Growth (PEG) ratio below 1 is good
4. Stock price is significantly less than tangible book value
5. A debt to equity ratio below 1
6. The company's assets should be more compared to the company's liabilities by at the least a factor of 2
7. Dividend Yield within 1/3 of the amount of the AAA bond yield
8. Earnings growth of at the least 7% annually for yesteryear 10 years
There are a variety of different ways to find a very good stock to buy but this would give you a starting point.