List of indicators for fundamental stock selection_Fundamental stock selection skills

Studying a stock can be analyzed through fundamentals and technical aspects. If investors choose technical stocks If you are not sure, you can choose fundamentals. Below is a list of indicators compiled by the editor for stock selection based on fundamentals. I hope it can help everyone.

List of indicators for fundamental stock selection

1 Stock price-earnings ratio, which is obtained by dividing the price per share by the earnings per share. The data obtained from different industries will vary greatly. Generally, Generally speaking, stocks with a price-to-earnings ratio of less than 20 times will be given priority.

2 The price-to-book ratio is the ratio of price per share to net assets per share. The higher the indicator, the greater the investment value of the stock.

3. Price-to-sales ratio, the ratio of stock price to sales revenue per share. Stocks with a high price-to-sales ratio are relatively more valuable.

4 Gross profit margin, the ratio of the company's gross profit to sales revenue, this indicator directly reflects the company's profitability, the higher the better.

5 Operating profit margin is the ratio of operating profit to total income. It can directly reflect how much of the operating income is earned by the industry. The higher the indicator, the better.

6 The return on net assets is the ratio of the company's profits divided by the net assets. The return on net assets indicator must reach more than 15% for five consecutive years before the investment value of the stock is relatively high.

7 The cash flow statement refers to the increase or decrease in a company's cash within a certain period of time. It is best for the cash flow statement to be positive and the higher the better.

8 Operating income is a combination of the company’s main business income and other income. Stocks with operating income increasing every year are the first choice for investment.

Fundamental stock picking skills

Whether there is significant growth in quarterly earnings per share. Growth is the eternal theme of the stock market and is the most important factor driving rising stock prices. However, what needs to be pointed out is: 1. Non-operating income should be eliminated; 2.2. Study whether growth can be sustained; 3. Whether revenue growth is supported by sales growth; 4. Whether the growth rate will slow down significantly, and if so, the stock price may fall.

Second, companies with an annual growth rate of earnings per share and stable growth for many years are more than 30-50% most likely to become bull market stocks. Of course, their profits must be supported by fundamentals, not unusual profits. Misunderstanding: A low price-to-earnings ratio does not necessarily have investment value. The current price-to-earnings ratio of steel is very low, but there is no motivation for the stock price to rise significantly. Expectations of huge profit growth are the driving force behind the rise in share prices.

Third, launching new products, adding new production capacity, new changes, and new management may bring good investment opportunities. Pay attention to changes in the industry and public stock information. Opportunities often lie in them. .

4. The size of the circulation plate. Under the same conditions, small caps may be larger. In the New Year's Eve market in 2003-2004, large-cap stocks performed outstandingly, while small-cap stocks that performed well performed better. In the market that rebounded in mid-2010, small-cap stocks gained much more than large-cap stocks.

5. Choose strong stocks with basic support. Strong people are constantly strong. The best performance in most stocks at the beginning of 2010 is the best performance in the quotation of 2004914. Find several stocks. They buy when prices rise again, sell before annual reports or quarterly reports, or sell when trends change. Weak stocks have reasons for being weak, we just don't know them.

Sixth, funds have strong research capabilities and the ability to capture market opportunities. Whether they are willing to buy a stock can also be used as a reference for you to choose stocks. The opportunities are likely to be higher with higher institutional recognition.

What are the specific indicators for fundamental stock selection?

1. Profitability indicators

Static indicators mainly include earnings per share, net profit margin, gross profit margin, etc. Dynamic indicators include net profit year-on-year growth rate indicators, etc.

2. Risk indicators

Asset-liability ratio, current ratio, quick ratio, etc. Risk indicators reflect the debt ratio of a listed company. The higher the debt, the higher the debt will affect its earnings per share, and the higher the operating risk will be. But investors should look at specific industries when analyzing.

3. Valuation indicators

Including price-to-earnings ratio, price-to-book ratio, price-to-current ratio, etc. These need to be compared with peers to be meaningful.

If the company's fundamentals are relatively good, it means that the company has no operational problems. Generally, the company's performance data will be announced in the form of announcements, and investors can judge whether the company is worth investing based on the announcements. In addition, In addition, investors also need to pay attention to macroeconomic and industry information to see whether it is good for the stock.