Stock Market Research
Stock market research is important in stock trading as it helps traders to identify a company’s history and its market performance. A proper research tells the quarterly and annual earnings, market value and a company’s net worth.
Also, a full research will help you analyze a company’s growth prospects which will make you take an informed decision before buying any stock.
The stock market is full of volatility and hence there are many factors which affect the stock price. In such cases, stock market research plays a pivotal role.
Global monetary fluctuations, government policies, and political decisions are some of the factors that heavily influence the stock market which makes it difficult to predict the price movement of shares.
Although analysts look for many things to predict the market sentiments, there are some strategies which help them to get a thorough insight into shares.
Strategies of Stock Market Research
Identify the basics of a company
It is important to identify a company's fundamentals before purchasing its stocks. This is because identifying a company's fundamentals will help you figure out many essential things for investment research.
For instance, a detailed analysis will help you get through about the company's position in the market. Also, you will get to know if the company is a big giant or just a startup that has recently started expanding its business.
Here, Swastika Investmart helps you figure out the basics of a company as it will help clients find the company's net worth.
Research, The Management Team
A company’s financial statements help you go through several factors, such as who is running the company? Are the leaders strong enough to handle the company during a crisis? The positive answers will give you a potential stock.
Experienced traders firstly go through the company's annual report as it comprises directors and a mix of experience across the board.
By reading a company's annual report, they come across important information such as the directors of a company? Are they buying shares in their own company and more?
These are the strong fundamentals which are very crucial for someone who is looking for a good investment.
Swastika helps investors get a detailed insight into the stock market research and the leaders.
Revenue is the amount of money a company earns during a specific period.
Sometimes revenue is broken down into two different things : operating revenue and non-operating revenue.
Operating revenue is a type of revenue generated from a company's core business.
While a non-operating revenue is generated from one-time business activities like selling an asset.
Net Income in Stock Market Research
Net income is the total money generated after tax and depreciation subtracted from revenue.
Net income is what is left after paying taxes and living expenses.
Therefore, Net Income = Revenue – Tax – Expenses
Earnings per share (EPS) for Stock Market Research
EPS or Earnings Per Share is the portion of a company's profit allocated to each outstanding share of common stock. Earnings per share serve as an indicator of a company's profitability.
You can count earnings per share by dividing earnings by the total number of shares available to trade. With EPS, you can easily compare a company's profitability per-share basis.
Price to Earnings Ratio (P/E)
A P/E ratio is considered as an important ratio in the analysis of financial security. It refers to the ratio of a company’s existing share price to its earnings per share (EPS).
If you want to find out the price of a stock, use this formula:
P/E Ratio = Price per Share ÷ Earnings per Share
Let’s understand P/E ratio with the help of a suitable example:
If share X is trading at Rs 24 and the EPS of share X for 12 month is Rs 3, then the P/E ratio of share X is 24/3 = 8. This means that the buyer of the share is investing Rs 8 for every rupee of annual earnings.
Frequently Check Share Price Performance
We all invest in the stock market to earn money. That is why it is essential to continuously monitor and keep track of your stocks.
Monitoring stocks allows you to make smarter investment decisions. As you all know, the stock market is dynamic and keeps on changing.
Swastika advises you to track the market trends continuously. The downfall of a share price could be an excellent opportunity to buy them.
On the other hand, rising share price allows you to sell the existing shares and profit from them.
What is the Right Time to Buy Stocks?
It isn't easy to get the right time to buy stocks. However, you can do a few things to minimize your risks and maximize your profit margin.
Final Thoughts About Stock Market Research
Trading in stocks is a challenging job where any decision regarding buying and selling of stocks requires comprehensives stock market research and cannot be taken in a hurry.
Stock trading platforms such as Swastika play a vital role in trading.
It improves your overall experience in stock marketing for beginners and professionals.
Besides, you can easily manage your portfolio without a flick of a switch.
If you seek the best yet most effective stock broking services, you can stop your search at Swastika.
Swastika Investmart is a leading online share trading platform that offers you the best trading services at low costs.
Awarded by the top stock exchange, Swastika is one of the best Stock Brokers in India, leaving no stone unturned in fulfilling related trading requirements.
We also act as the best online stock broker for beginners as it provides various modules required for trading.
Swastika offers you the best stock market research and advisory report that will help you identify a good stock. It is always good to buy a potential stock as it gives good stock trading returns in the long run.
Swastika, thus provides a detailed report including a company’s past performance, fundamental analysis, technical analysis, company’s revenue of the last 5 years or more.
- Check the company’s financial reports.
- Make a clear attention to the company's revenue, net income, Earnings per share, Return on Equity, Price to Earnings Ratio.
- Focus on qualitative research like how does the company make money? What is a company’s business model? Do companies have an ability to innovate themselves?
A stock broking company provides you the stock market research reports of the companies. Contact Swastika's help desk and we will provide the equity analyst research reports on companies and industries.