(MENAFN – ACCESSWIRE) Schaeffer & #39;s Investment Research Experts recently offered their top tips on researching stocks.
CINCINNATI, OH / ACCESSWIRE / December 2, 2020 / Researching is one of the most critical parts of purchasing a stock. Experienced investors have likened the process to that of buying a new car, because there are so many aspects to consider. The investment experts at [To enable links contact MENAFN] Schaeffer & #39;s Investment Research recently offered their top tips for researching and evaluating any stock.
& quot;First, you need to locate all of your stock research materials, & quot; Schaeffer & #39;s Investment Research experts said. & quot;Evaluate the company & #39;s financials by accessing the documents they must file through the U.S. Securities and Exchange Commission. & quot;
[To enable links contact MENAFN] Schaeffer & #39;s Investment Research experts explained the Form 10-Q and Form 10-K are reports that can be easily accessed. The Form 10-K is an annual report, which includes independently audited financial statements. Form 10-Q is a useful quarterly update on company operations and financials. If you & #39;re working with a stock brokerage firm, you should also be able to find highlights from these forms on the firm & #39;s website.
& quot;Reading countless financial reports can be exhausting, so we always suggest focusing on the most important features of the company financials, such as net income, revenue, and earnings per share, & quot; the team at Schaeffer & #39;s Investment Research said.
The experts at [To enable links contact MENAFN] Schaeffer & #39;s Investment Research emphasized the importance of qualitative research. The quantitative research is that which reveals a company & #39;s black and white financials. However, qualitative research is what & #39;s seen between the lines. Qualitative research offers a truer understanding of a company & #39;s prospects.
& quot;You & #39;re going to want to ask a lot of questions when researching a stock, & quot; Schaeffer & #39;s Investment Research experts said. & quot;You want to have a clear understanding of how the company makes money, why it has a competitive advantage, and how solid the management team currently is. & quot;
The [To enable links contact MENAFN] Schaeffer & #39;s Investment Research team explained that these questions can help you determine what could go wrong when purchasing a certain stock. A poor management team or one composed entirely of company insiders. A healthy board of directors is one with a number of individuals who think independently. These questions can also help you determine any potential red flags that should prevent you from making the investment, such as a new CEO changing the direction of a business or an important patent expiring.
& quot;Now, it & #39;s time to put your research to work, & quot; the experts at Schaeffer & #39;s Investment Research said. & quot;Combine all of the elements of your research, from concrete financials to internal company dynamics, to determine whether or not you want to invest in a long-term partnership with this company. & quot;
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SOURCE: Schaeffer & #39;s Investment Research
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