A Beginner’s Guide To Researching Stocks

There are a number of ways to boost your income if you have financial goals in mind. 

You could take on a side-hustle, open up a high-yielding savings account, or look for ways to invest your money. For the context of this article, we are going to talk about investing in stocks, and more specifically, how to research the companies that sell them. After all, to ensure you make a wise investment, you need to make sure whichever company you choose is doing well financially. 

Before committing to research, decide what kind of company you want to invest in, and consider those whose ethics and values align with your own. This will help you to narrow down your search. Then consider the following when you’re in the research phase.

#1: Source expert information online

Choose a free API, such as Yahoo Finance or Alpha Vantage, and use them to gain up-to-date information on the stock market and the stock portfolio of the companies that you might want to consider. Other sites worthy of note include The Motley Fool, MetaStock, and Bloomberg.com. These are all reliable websites, with expert-level sources and the data you need to help you come to a wise decision when choosing which stocks to buy. 

#2: Explore company websites

Publicly traded companies are required to publish annual (and sometimes quarterly) reports, with information about their earnings, net income, and other pieces of financial data. These are often published in printed publications but you can sometimes source this information when visiting the websites of the companies you are considering. Look for the section of the website that is targeted at investors and review the information that is available.

#3: Use a stock research tool

There are a number of stock research tools available, and they all have one particular purpose: To make it easier for investors to make an informed decision when choosing which stocks to buy. Most of them are free to use, but some have a premium version with more advanced features for those who are willing to pay. Check out these stock research tools and experiment with each before deciding which one better suits your needs. 

#4: Check the Fortune 500 and Fortune 1000 lists

If you want to know which companies’ stocks have performed well in a particular year, check out the lists put out by Fortune magazine. The Fortune 500 and Fortune 1000 lists are made up of the top publicly traded companies of each year, giving you a clear indication of which companies have the highest revenue. 

#5: Research the company’s industry

After using the information we have thus far provided, you will have a better understanding of which companies are doing well financially. However, it’s still important to look at the bigger picture, with specific reference to the company’s industry. Is their industry growing or shrinking? Are there any disruptive influences? Read expert articles online and any media reports that detail changes in the industries of the companies you are considering. 

By taking these steps, you should be able to make a more informed decision when choosing which stocks to buy. Continue your research online and around our website for more information.