What is some good free advice regarding stock picks?


Quick Answer

Some reputable and free stock advice from Forbes is to invest in companies with clear business models, recognize brand reputation, consider dividends, and utilize financial metrics. Individual or company goals can alter an investing strategy.

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Full Answer

Having specific knowledge of an industry can assist in understanding a particular company's business model, reports Forbes. This approach is in conjunction with a long-term investing philosophy. Moreover, brand recognition for established and emerging brands can assist when investing in a stock. It is important to invest in brands that are ubiquitous, and consider brands only relative to a company's industry. Investors should choose stocks within a portfolio that pay out quarterly dividends.

Multiple technical indicators, such as price-earnings ratio, PEG ratio, and price-to-sales ratio, can assist with stock investing, mentions Forbes. The price-earnings ratio discloses how many years worth of profit an investor pays for a stock. An investor can divide the stock price by the earnings per share to arrive at this indicator. The PEG ratio is also known as the price earnings growth ratio and measures the degree of a discount or premium on a current stock price. It utilizes the next five years of growth projections to determine the value of a stock.

Finally, the price-to-sales ratio considers total market capitalization and the total stock sales over the previous 12 months, states Forbes. The indicator discloses how much an investor is paying for every dollar in annual sales.

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