Reverse stock splits are typically undertaken by companies seeking to boost their stock price by reducing the number of outstanding shares. Often seen as a sign of weakness, it attracts short-sellers attempting to profit from statistically proven future price declines.
Stock float is the number of shares available to trade in the public market. This includes all shares held by institutional and retail investors and restricted stock owned by insiders. Float can impact a stock's trading volume, price movements, and volatility.
EPS or earnings per share is a measure of profitability. It tells investors how much profit a company makes for each share of its stock. The higher the EPS, the more profitable the company is.
Capital stock, also called authorized shares or authorized capital, is the maximum number of shares a company can issue to shareholders. A corporation's charter declares the number and type of stock it can issue, so no more than this amount can be issued.
The best ways to find cheap stocks are by using future earnings, asset valuation, discounted cash flow, fair value, and the margin of safety. Do not look at stock price alone to assess if a stock is undervalued; stock price is only useful in combination with other criteria.
The Price to Earnings Ratio is a commonly misunderstood calculation for determining a company's relative value. The PE Ratio is only useful for comparing companies in the same industry with similar business models. It should not be used to compare radically different businesses.
To calculate dividend yield, divide the stock's annual dividend per share by the stock's current market price. The dividend yield increases as share prices drop, so to triple your yields, buy stock price panic crashes.
Cash flow is the lifeblood of a company, and the cash flow statement shows how much money was generated and spent during a given period, which makes it invaluable for investors looking to invest in a company.
Becoming a skilled investor requires proficiency in analyzing a balance sheet. This vital financial document offers valuable insights into a company's overall financial well-being,...
Investors use the income statement to understand a company's key metrics, revenue, expenses, profit, and operating costs. It is one of the most important documents investors use to understand a company's financial performance.
Easily Learn How to Calculate the Fair Value & Intrinsic Value of a Stock with our Formulas & Download Our Free Intrinsic Value Excel Calculator
You can analyze stocks using fundamental criteria like PE Ratio, Earnings, and Cash Flow, or with technical analysis using charts, stock price, volume, and indicators.
Hawkish vs. dovish refers to the policy stance of the Federal Reserve governors. Hawks are prepared to swoop down to restrict growth in an overheating economy. Doves want the economy to fly by reducing interest rates to boost investment, employment, and growth.
To calculate Beta or (β) you need to divide the variance of an equity's return by the covariance of a stock index's return.
Right now, according to our research, the stock market is certainly not cheap, but neither is it extremely overvalued. The current PE of 28 is above the historic median but way off the peaks over the last 100 years.
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