Key Takeaways: Growth stocks can be some of the best investments when bought at the right time. While many high-growth companies trade at premium valuations, some are still reasonably priced despite strong future earnings potential. Here are three of the best growth stocks to buy now. The first two stocks look interesting, but Stock #3 …
Key Takeaways: Dividend stocks can provide investors with steady cash flow, making them a great addition to any portfolio. Here are three high-yield dividend stocks that pay investors regular cash payments just for holding the stock. Stocks 2 and 3 offer dividend yields over 7%, meaning a $100,000 investment in these stocks could generate $7,000/year …
Key Takeaways: The stock market is full of short-term noise, but sometimes, strong businesses trade at discounts to their long-term potential. These three stocks are high-quality businesses that look undervalued, according to analysts. 1: PayPal (PYPL) PayPal has long been a leader in digital payments, but the stock has fallen over 70% from its all-time …
Key Takeaways: Large-cap stocks are companies that are worth $10 billion or more. These companies tend to be more stable, and most investors feel more comfortable owning large-cap stocks than smaller businesses that could potentially be more volatile. Here are three of the best undervalued large-cap stocks to consider for March 2025. All three of …
Key Takeaways: While short-term trends come and go, great businesses continue to grow earnings over time and can make excellent long-term investments. Here are three stocks that look undervalued today that can become great buy-and-hold stocks for the next decade. The first two stocks look interesting, but stock #3 has higher risk with the potential …
Key Takeaways: While the market tends to favor flashy growth stocks, the best opportunities are often in high-quality businesses trading at cheap valuations. Here are three undervalued stocks for 2025 that could see big gains over the next one to three years. The first two look interesting, but Stock #3 looks like the best opportunity …
Key Takeaways: Small-cap stocks can be risky, but they can also offer some of the biggest opportunities for outsized returns because they fly under the radar for most investors. Here are 3 undervalued small-cap stocks for March. The first two look interesting, but Stock #3 looks like the best one on this list. 1: Travelzoo …
Key Takeaways: AI is the biggest investing opportunity of our generation, but not every AI stock will be a winner. While some companies are making headlines, the best AI stocks for 2025 are the ones positioned for long-term, steady growth at prices that make sense. Here are 3 stocks that could be some of the …
Key Takeaways: These three companies have caught the attention of billionaire investors like David Einhorn, Michael Burry, and Bill Ackman. These stock ideas could be interesting for investors looking for turnaround plays and long-term growth. 1: Peloton (PTON) Billionaire investor David Einhorn is betting on Peloton’s turnaround. Last quarter, he added 10% to his stake …
Key Takeaways: March presents new opportunities for investors looking for undervalued stocks with strong long-term growth potential. These are three of the best stocks to buy today that are well-positioned in their industries, delivering impressive earnings growth and trading at attractive prices. 1: Uber Technologies (UBER) First up is Uber. The company first turned profitable …
Key Takeaways: How would you build your portfolio today if you could only buy three stocks and you had to hold for the next decade? First off, you’d probably want to own at least 10 stocks. Studies show that diversification helps reduce risk by spreading exposure across multiple businesses. But if you theoretically had to …
Key Takeaways: Amazon was once a $5 stock, and early investors made fortunes as it became a global e-commerce leader. Today, these three stocks have the potential to be the next regional Amazon, dominating e-commerce and other industries in their respective markets. 1: Sea Limited (SE) First is Sea Limited, a company that’s following Amazon’s …
Key Takeaways: AI is changing the world faster than ever, and the companies behind the technology are poised for massive growth. While Nvidia has dominated the headlines, there are other AI stocks with just as much, if not more, potential. Here are three of the best AI stocks to buy for 2025. 1: Advanced Micro …
Individual small-cap stocks can oftentimes outperform their large-cap counterparts because small-cap companies tend to be able to grow faster while receiving less analyst coverage. This article covers when small-cap stocks tend to perform well, why they can be good investments, and the key risks investors should consider before adding small-cap stocks to their portfolio. Table …
Small-cap stocks have created some of the biggest winners in stock market history. Legendary investor Peter Lynch focused on finding under-the-radar small-cap stocks to achieve outsized returns because he believed, “The size of a company has a lot to do with how much money you’re going to make on it.” Unlike large-cap stocks, small-caps tend …
In the 1950s and 60s, Warren Buffett searched for stock ideas by reading the 26,000-page Moody’s Manual cover to cover. This gave him an edge because he was able to find great stocks that most investors overlooked. Today, we can find great ideas faster with stock screeners. Stock screeners let us filter the entire global …
Just because a stock looks cheap doesn’t necessarily mean it’s a bargain. Some stocks look undervalued, but that’s because they’re actually poor businesses that are destined to fail. These stocks are called value traps because they can draw value investors in, but they end up being a trap. This article covers five major red flags …
Finding undervalued stocks isn’t as simple as chasing low P/E ratios or buying stocks just because they’ve dropped in price. The real goal is to find strong, high-quality companies that the market has overlooked. To do this, investors can use a combination of valuation metrics, growth indicators, and financial health measures to separate potential bargains …
The stock market isn’t always rational. Prices swing based on emotions, macroeconomic events, and investor sentiment, which can create opportunities for investors to buy stocks when they’re undervalued. In this article, we’ll talk about how to find undervalued stocks by looking at why stocks typically become undervalued, how to determine if a stock is undervalued, …
Key Takeaways: British American Tobacco has already climbed over 30% this year while also delivering investors nearly $3 per share in dividends. However, the stock still looks cheap today: British American Tobacco (BAT) is a global tobacco company that generates strong, consistent cash flows from its legacy cigarette brands. These cash flows allow the company …
Key Takeaways: Investors have their eyes on Shift4 Payments stock ($FOUR), which is currently Michael Burry’s third-largest holding in his hedge fund, Scion Asset Management. The stock has already climbed over 50% in the past year. Shift4 Payments is a fast-growing payment processing company that helps businesses in hospitality, retail, e-commerce, and other industries handle …
Not all companies grow equally. Some companies can scale their operations seamlessly, growing revenue and profits with the kind of efficiency that fuels long-term business success and can deliver life-changing returns for investors. But other businesses struggle. As they expand, their costs rise just as quickly as revenue, leaving them with shrinking margins, poor returns …
Not all growth stocks are created equal. Some operate in massive, untapped markets with room for exponential growth, while others see their growth capped because they’ve become a big fish in a small pond. Tesla and Shopify both thrived because they dominated massive and expanding markets, which gave these companies lots of room to grow. …
Imagine finding Amazon stock when it was just an online bookstore or Tesla before electric cars reshaped the auto industry. These companies were once considered small players, but they went on to disrupt entire industries and deliver extraordinary returns to early investors. The key to finding high-growth stocks early lies in understanding the specific traits …
Key Takeaways: Visa ($V) stock has risen 17% per year over the past decade, while the market averaged around 11% annual price returns. This has led to Visa stock nearly doubling the market’s total return over the past decade. Visa is one of two dominant players in the global payments duopoly, alongside Mastercard (MA). Its …
Key Takeaways: Procter & Gamble ($PG) is one of the most reliable and diversified consumer goods companies in the world. However, the stock has been flat over the past 3 years and doesn’t seem likely to deliver strong returns anytime soon. Procter & Gamble is one of the best dividend stocks in the world, boasting …
Key Takeaways: Johnson & Johnson ($JNJ) is one of the most stable and diversified healthcare companies in the world. The stock is down 12% over the last 3 years, which has led to the stock being fairly cheap today: While Johnson & Johnson isn’t going to make you rich, the company is one of the …
Key Takeaways: UnitedHealth Group (UNH) stock has fallen over 15%, following the unexpected passing of UnitedHealthcare’s CEO, Brian Thompson. This loss has had a significant impact on the company and its leadership. Despite the short-term uncertainty, UnitedHealth appears undervalued today, with analysts estimating a 25% upside potential. As the largest U.S. health insurer, UnitedHealth boasts …
Key Takeaways: Amazon (AMZN) has delivered an impressive 28% average annual return over the past decade, driven by its e-commerce dominance and the rapid growth of Amazon Web Services (AWS). Amazon looks slightly undervalued today, with analysts expecting 20% annual earnings growth ahead. That said, the company faces challenges in keeping up its cloud growth …
Key Takeaways: Microsoft has averaged an impressive 26% annual return over the past decade, driven by its successful transition to cloud computing, the dominance of its Azure platform, and steady growth across its Office 365 and LinkedIn segments. That said, Microsoft faces ongoing challenges in maintaining its cloud growth momentum as competition intensifies from Amazon …
Key Takeaways: Alibaba stock has fallen over 60% over the past 5 years, reflecting regulatory pressures, slowing growth, and increasing competition in the evolving e-commerce landscape. Nevertheless, Morningstar continues to rate Alibaba as a wide-moat company, citing its dominant position in China’s e-commerce market and its ability to boost gross merchandise volume through strong customer …
Key Takeaways: Target stock has fallen over 40% over the past 3 years, reflecting the market’s concerns over its weakening position in the evolving retail landscape and its lack of a competitive moat. Today, the stock looks undervalued. However, the business has struggled to define its unique selling position in an increasingly competitive retail environment. …
Key Takeaways: Walmart’s stock has jumped nearly 75% over the past year, thanks to a big boost in its valuation as the market recognizes Walmart as a leader in the evolving retail landscape. Walmart might look like an interesting company today, but it’s worth understanding that the stock has never been so expensive over the …
Key Takeaways: Intel’s stock has dropped nearly 60% just this year, driven by stagnant revenue growth and shrinking earnings. The company is dealing with operational challenges, including supply chain issues and a slower-than-expected turnaround in its manufacturing technology. Intel is also expected to face tougher competition in the semiconductor market, particularly from rivals like AMD …
Key Takeaways: Starbucks’ stock is down nearly 20% over the past three years, because even though revenue has grown 20% over this period, earnings have stayed flat. Starbucks faces operational challenges, like labor disputes and strategic hurdles, and Starbucks is expected to face growing competition in China from both local and international rivals, which could …
Key Takeaways: AMD stock is down over 15% since the start of 2022. Now, analysts think the stock is undervalued: Could this be the opportunity investors have been waiting for? What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula …
A company with higher net margins than its peers often shows that it has strong management and competitive advantages, which can build wealth for shareholders over time. In this guide, we’ll cover everything you need to know about net margins, including how to calculate them, what factors influence them, and what a good net margin …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Valuing a stock doesn’t need to take hours of research or complex Excel spreadsheets. The 2-Minute Valuation Model that we’ll talk about today is an incredibly handy tool for investors to quickly assess whether a stock is overvalued or undervalued. Even if math was your least favorite subject in school, and it feels like you’re …
A company with higher gross margins than its peers often demonstrates efficient production processes or strong pricing power, which can drive long-term profitability and shareholder value. In this guide, we’ll cover everything you need to know about gross margins, including how to calculate them, what factors influence them, and what a good gross margin looks …
Key Takeaways: Estée Lauder has fallen over 75% in the past 3 years, driven by weak performance in travel retail, slower recovery in key international markets like China, and evolving consumer preferences in the beauty industry: Nevertheless, Morningstar continues to rate Estée Lauder as a wide-moat company due to its strong portfolio of luxury beauty …
Key Takeaways: Disney’s stock has fallen over 20% in the past 3 years due to challenges in its streaming business, linear TV, and concerns with the company’s strategic direction: Nevertheless, Morningstar still rates Disney as a wide-moat company due to its strong content franchises. Disney is still figuring out the proper monetization strategy for its …
Key Takeaways: Pfizer’s stock has fallen over 50% in the past 3 years as revenue from its COVID-19 vaccine waned. Investors have also grown worried about the lack of results from the company’s $43 billion purchase of Seagen and rising competition following the patent expiration on key drugs. Nevertheless, Morningstar still rates Pfizer as a …
Key Takeaways: Nike’s stock has fallen over 50% in the past 3 years due to a series of strategic missteps and a lack of product innovation: Nevertheless, Morningstar still rates Nike as a wide-moat company due to its strong brand, which means the company should be able to earn returns on capital exceeding its cost …
Key Takeaways: NXP Semiconductors is a wide-moat company that has traded flat over the past 3 years. As a result, it looks like the stock is strongly undervalued today: Today, NXP Semiconductors powers the future of technology with its leadership in automotive chips and IoT solutions. The company could have a promising future as it …
Key Takeaways: Meta stock has led investors to see a 30.1% annualized return over the past 12 years. Very few companies have delivered this kind of performance for investors. Today, Meta dominates social media and is a leader in digital advertising. The company could have a promising future with its ventures into AI and the …
Key Takeaways: Google has been a capital-compounding stock for investors, returning 18.7% per year over the past 20 years: Today, Google is a wide-moat, high-quality business, and the stock seems slightly undervalued. This could be an excellent stock to buy at the right price in 2025. What is the 2-Minute Valuation Model? There are 3 …
What is the EV/Revenue Ratio? The EV/Revenue ratio, or the Enterprise Value-to-Revenue ratio, is a particularly useful valuation multiple when analyzing companies that aren’t yet profitable, such as early-stage tech companies or businesses with inconsistent earnings. By focusing on revenue, the EV/Revenue ratio offers a snapshot of how much investors will pay for each dollar …
What is EV/EBIT? EV/EBIT is a financial ratio that stands for Enterprise Value (EV) to Earnings Before Interest and Taxes (EBIT). This ratio helps long-term investors evaluate whether a company’s stock is fairly valued. EV/EBIT measures the total value an investor would need to acquire a company (including debt obligations) relative to its operating income, …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Stock screeners can be valuable tools for investors because they help filter through thousands of stocks based on specific criteria. This saves investors time by quickly finding the best stocks that fit their investing strategy. Two popular options for stock screeners are TIKR and Finviz. In this article, we’ll compare these two screeners so you …
When a company consistently sees stronger operating margins than its peers, it might indicate that the business has a competitive advantage and can build wealth for its shareholders. In this guide, we’ll cover everything you need to know about operating margins, including how to calculate them, why they matter, what a good operating margin is, …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
In investing, understanding a company’s profit margins helps to provide a clear picture of how much profit a company retains at different stages of its income statement. These metrics reveal whether a business can control costs, beat competitors, and generate sustainable shareholder returns. In this guide, we’ll break down the three types of profit margins, …
In the world of investing, few concepts are as powerful yet misunderstood as a company’s competitive advantage. In this guide, we’ll walk through what competitive advantages are, the types of “moats” companies can have, and the key financial and qualitative indicators to spot them. What is a Competitive Advantage? A competitive advantage is any unique …
What is the Buffett Indicator? The Buffett Indicator, named after legendary investor Warren Buffett, is a simple yet powerful tool that helps investors gauge whether the overall stock market is fairly valued, overvalued, or undervalued. Buffett himself has referred to this ratio as “probably the best single measure of where valuations stand at any given …
What is the Dividend Payout Ratio? The dividend payout ratio is a financial metric that shows how much of a company’s earnings are distributed to shareholders as dividends. This ratio is particularly important for dividend investors because it helps to show whether the company can continue to pay and grow its dividends. It’s better for …
Key Takeaways: What is the 2-Minute Valuation Model? There are 3 core factors that drive a stock’s long-term value: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term normalized EPS, and investors can use …
Key Takeaways: What is the 2-Minute Valuation Model? If you think about it, there are really only 3 things that drive a stock’s long-term valuation: The 2-Minute Valuation Model uses a simple formula to value stocks: Expected Normalized EPS * Forward P/E ratio = Expected Share Price Revenue growth and margins drive a company’s long-term …
When it comes to investing in dividend-paying stocks, it’s important to understand a stock’s key dividend dates because these dates determine your eligibility for receiving dividends on the dividend stocks you buy. The four most important dividend dates are the ex-dividend date, the declaration date, the record date, and the payment date. Here are what …
The cash flow statement is one of the primary financial statements that provides a detailed breakdown of how cash is generated and used by a company over a period of time. The cash flow statement is often regarded as the most important financial statement for understanding a business’s true profitability because it shows how much …
What is the Balance Sheet? A balance sheet is a financial statement that provides a snapshot of a company’s financial position at a specific point in time. Understanding and analyzing a company’s balance sheet helps investors assess a company’s stability, growth potential, and overall financial health. The Balance Sheet’s Key Formula The balance sheet formula, …
What is an Income Statement? The income statement, also known as the profit and loss statement, provides insights into a company’s operational performance and profitability over a quarterly or annual period and summarizes a company’s revenue, expenses, and profits or losses. 3 Key Parts of an Income Statement The income statement has three main parts: …
Analyst estimates are predictions or forecasts about a company’s future financial performance that are created by equity research analysts who follow that business or industry. Analyst estimates often take the form of quarterly, annual, or multi-year forecasts for a company’s revenue, earnings per share (EPS), operating margins, or other key metrics. Analyst Estimate Common Terms …
What is Revenue Growth, and Why Does It Matter? Revenue growth is an increase in a company’s sales, and is one of the key drivers of a company’s shareholder returns over time. It helps to indicate demand for a company’s products or services, reflects competitive positioning, and signals the potential for sustainable earnings growth. Why …
What is Dividend Growth? Dividend growth refers to the increase in a company’s dividend payments to its shareholders over time. By increasing dividends, companies increase shareholder returns and signal confidence in creating strong future cash flows. Overview of Dividends and Their Importance to Investors Dividends are portions of a company’s earnings distributed to shareholders, usually …
What is CAGR, and What Does It Stand For? CAGR stands for Compound Annual Growth Rate. CAGR is particularly important for long-term investors because it provides a clear picture of how an investment has grown over time, accounting for the compounding effect. For instance, if you invested $10,000 in a stock ten years ago, and …
What Are Dividend Stocks? Dividend stocks are stocks that pay regular dividends to their shareholders. A dividend is a portion of a company’s earnings that a company can pay out as cash to its shareholders, usually quarterly. Dividend stocks are popular among retirees and investors seeking consistent, steady income from their portfolio holdings. High-quality dividend-paying …
Despite a weak consumer environment, analysts see a 62% upside for Celsius stock. Celsius just reported Q2 earnings, where CEO John Fieldy noted that Celsius’s second-quarter sales were stunted by the “second quarter energy drink category slowdown.” This and other factors have contributed to Celsius Holdings (CELH) stock seeing a 56.1% price drop in the …
GoDaddy stock has skyrocketed 121.5% in the past year. 2024 has been great for GoDaddy (GDDY) shareholders, with the stock soaring 121.5% in the past year, from $71/share to $157/share today: GoDaddy’s operating profits increased significantly in the first half of 2024, and analysts forecast continued revenue and earnings growth in the years to come. GoDaddy primarily …
The past 5 years have been tough for Hormel stock. Hormel (HRL) shareholders nearly broke even in the past 5 years, collecting $4.89 in dividends over the past 5 fiscal years while the stock fell from $42 to $32/share. This is really poor: Hormel develops and distributes meat and other food products primarily in the …
3M stock recently jumped 23.0% in a day following strong earnings. If you’re considering whether 3M Company (MMM) is a good stock to buy, you’ll want to evaluate the company’s safety and quality to see if it would make a suitable long-term investment. While 3M is expected to grow over the next few years, it’s …
Why is growth important for a stock? Growth is one of the most important things to look for in stocks that you’re thinking about investing in – even if you just want to buy safe stocks that go up over time and pay dividends. According to the International Monetary Fund, global GDP is expected to …
GCT stock is down, but revenue is expected to grow over 50% this year. GigaCloud Technology (GCT) stock has skyrocketed 236.7% in the past year, but its recent 35.1% fall from its 52-week high could make it cheaper for investors with a high risk tolerance: GCT provides B2B e-commerce solutions for cumbersome products like furniture, …
ZIM stock is up 43% in the past 90 days and technically had a 50% dividend yield last year. ZIM Integrated Shipping Services (ZIM) provides container shipping and related services in Israel and internationally. As of March 1, 2024, ZIM operated a fleet of 150 vessels, including 134 container vessels and 16 vehicle transport vessels. …
If you’re considering whether Genuine Parts Company (GPC) is a good stock to buy, you’ll want to evaluate the company’s safety and quality to see if it would make a suitable long-term investment. While GPC is still growing, it’s technically a mature company. It’s all too common for mature companies to see lower sales, shrinking …
If you’re considering whether Coca-Cola is a good stock to buy, you’ll want to evaluate the company’s safety and quality to see if it would make a suitable long-term investment. It’s no secret that Coca-Cola is a mature company. In fact, Coca-Cola’s revenue peaked back in 2012, and the business saw years of revenue declines. …
Genuine Parts Company (GPC) has one of the best dividend track records in public equity market history, with the company paying dividends every year since going public in 1948. But the best part is that GPC’s legacy isn’t over. Wall Street analysts expects for GPC to see steady sales growth and dividend increases over the …
It’s no secret that 3M’s going through some tough times. But it’s cheap. 3M used to be a magical stock. The company delivered double-digit shareholder returns while growing its dividend every year, all fueled by its recession-proof business model. However, things have taken a turn for the worse as the stock has fallen (47.4%) over …
Key Points: View 3M’s full Q2 earnings results >>> 3M’s Earnings Results: 3M Company’s shares hit a 52-week high after reporting strong quarterly results: 3M reported adjusted revenue of $6.26 billion, beating analysts’ estimates of $5.83 billion by 7.3%. The company also reported adjusted EPS of $1.93 per share, beating analysts’ estimates of $1.68 by …
GPC has one of the strongest dividend track records of all public stocks. Genuine Parts Company (GPC) has grown its dividend for 68 consecutive years and has paid dividends every year since it went public in 1948 (a total of 76 consecutive years). This makes GPC one of only 53 “Dividend Kings” today, which are …
Key Points: View GPC’s full Q2 earnings results >>> GPC’s Earnings Results: Genuine Parts Company lowered its full-year outlook due to decreased sales growth expectations, which were exacerbated by high interest rates and higher living costs. Newly appointed CEO Will Stengel said the results reflected “softer-than-expected market conditions.” GPC now expects 1-3% sales growth for …
Coca-Cola is one of only 54 Dividend Kings in the world, because it’s increased its dividends to shareholders for 52 consecutive years.
Share repurchases, or share buybacks, have gained popularity in the last two decades. According to a report from Goldman Sachs, stock buybacks initiated by companies part of the S&P 500 index might touch $925 billion in 2024, up 13% year over year, and Goldman estimates buybacks to rise by 16% to $1.075 trillion in 2025. …
Amazon’s story began in 1994 when Jeff Bezos had a simple yet ambitious idea: an online marketplace for books. Over the course of decades, Amazon grew from selling books to operating successful business units across many industries. What’s most important about this remarkable journey is that while Amazon’s team has done the hard work of …
Genuine Parts Company (GPC) is an old-time dividend favorite. But are its best days in the past? GPC has increased its dividend payments to investors for a whopping 68 consecutive years. While GPC has one of the best track records among dividend stocks, it’s still not immune to setbacks. Over the past 12 months, GPC’s …
Key Points: PepsiCo’s Earnings Results: PepsiCo’s most recent earnings report showed mixed quarterly results due to declining demand for its drinks and snacks in North America. The lower demand is likely a result of years of price increases. CEO Ramon Laguarta stated that shoppers across all income levels adjusted their buying habits and opted for …
Real estate has been one of the greatest asset classes for wealth creation in history, and investing in Real Estate Investment Trusts (REITs) can allow you to get all the benefits of investing in real estate without going through the hassles that come with direct property ownership. In addition, owning REITs is one of the …
The dividend yield is a key metric for investors looking to gauge the income potential of their investments. It measures how much a company pays out in dividends each year relative to its stock price, offering a clear snapshot of potential returns a stock can offer independent of market price fluctuations. Understanding dividend yield can …
Enterprise value (EV) is a financial metric that offers a comprehensive snapshot of a company’s total value. Unlike market capitalization which solely accounts for a company’s equity value, enterprise value factors in the firm’s entire capital structure such as its debt, cash, preferred equity, and minority interest. By doing so, EV provides investors, analysts, and …
Long-term investors often look at various valuation metrics when deciding whether to invest in a particular company. One helpful metric to evaluate is market capitalization or market cap. Market capitalization is a measure of the total value of a company’s outstanding shares of stock. It is calculated by multiplying the current market price of one …
EBITDA stands for earnings before interest, taxes, depreciation and amortization. It’s a financial metric commonly used to evaluate a company’s financial performance and its ability to generate cash flow. This post will cover EBITDA in detail, including what it tells you, when to use it to evaluate businesses, and its limitations. What is EBITDA? EBITDA …
Free cash flow, or FCF, is the cash a company generates after it accounts for outflows required to maintain business operations and support capital expenditures. Many investors consider FCF a better measure of profitability than net income or earnings, as it excludes non-cash expenses and accounts for capital spending and changes in net working capital …
A price target is a stock’s estimated future price, and it’s typically based on a company’s projected earnings, historical earnings, and economic conditions. Wall Street equity research analysts typically provide stock price targets for the public companies that they cover. They also offer buy, sell, or hold recommendations. While there’s no guarantee a stock will …
Earnings Per Share (EPS) is a financial ratio investors use to evaluate a company’s profitability. It represents the portion of a company’s net earnings allocated to each outstanding share of common stock. By examining EPS, you gain valuable insights into a company’s ability to generate and distribute profits to its shareholders. This article will cover …
Some businesses invest their shareholders’ capital wisely, turning every dollar into significantly more profit. These companies create long-term value and drive strong stock performance for investors. But other companies waste capital through unprofitable expansion or poor decisions. These companies see poor returns, weak profitability, and they’ll ultimately see poor stock performance over the long term. …
Return on Equity (ROE) is a financial ratio that reflects a company’s profitability in relation to the equity invested by shareholders. It basically measures how effectively a company utilizes investors’ funds to generate profits. The ratio is vital in assessing a company’s financial performance and comparing it to that of its industry peers. In this …
Financial analysts and investors look at various metrics before deciding whether a stock is a buy. One of the metrics is the price-to-earnings ratio (P/E ratio). The P/E ratio tells you whether a company’s stock price is overvalued, fairly valued, or undervalued. It also gives insight into a stock’s value compared to its industry peers. …
Introducing Valuation Models! 
