Learn how to compare stocks to buy and stop losing money in the market! This is where I get to show you how I picked stocks working as an analyst, how I compared stocks to invest in only the best of the best.
Ways to Compare Stocks
There are two ways to compare stocks and this is going to be extremely important in making sure you invest in the best. First is you can compare the company’s financial ratios against others in its own sector or industry.
Remember, the stock market and really the economy, is categorized into sectors or groups of companies that serve a common purpose.
Ways to Compare Stocks
How to Compare Stocks
So you absolutely have to measure companies against others in the same sector or industry and while you’re doing it, you want to ask yourself three questions.
How to Compare Stocks
First are most of the ratios better or worse in one stock compared to the other, does one company have a clear advantage?
How to Compare Stocks
Second, is the advantage consistent over a long-time, does it come from a clear competitive advantage. And third, is that advantage already reflected in the stock prices?
How to Find the Best Stocks to Buy
After looking at a few consumer staples companies, we decide we want to look a little closer at Kimberly-Clark, ticker KMB, and Colgate-Palmolive, ticker CL.