How to Compare Stocks - 3 Best Strategies

How to Compare Stocks - 3 Best Strategies https://youtu.be/ag2kVaCkZEM Get the FREE Checklist to all three videos in the How to Compare Stocks series and follow along. https://ift.tt/2DDLc7A This is the third in our three-video series on how to invest and going to be one of my favorites. Those first two videos showing you how to find your financial goals and how to invest in stocks are important but the old equity analyst in me loves to compare stocks. In this video, I’ll show you two ways to compare stocks to buy. We’ll use financial ratios to compare stocks and I’ll give you three questions you can ask to make sure you always invest in the best stock. I’ll then show you how to compare stocks in a sector or industry to find those best of breed. We’ll be using our Let’s Talk Money Portfolio Tracker Spreadsheet through the series. Download this Portfolio Tracker and Investing Spreadsheet! [Community Discount Code] 📊 https://ift.tt/2IaUgA4 If you haven’t watched the other two videos in the series, I’ll link to each below. This is a complete stock market for beginners course so don’t miss a single video. See how to create your financial goals and get the motivation to save here https://youtu.be/WT_cMbWmO14 Find out how to invest in stocks along with bonds and real estate in this video https://youtu.be/YavR3iQjxWs There are three ways to compare stocks to buy that I’ll describe in the video. The first is comparing financial ratios of a stock against its own history. Are ratios like price-to-earnings and margins getting better or worse? Another way is to compare ratios against two stocks and third is to compare the ratios of a stock against the average for its sector or industry. Remember, when you compare two stocks against each other, you always want to compare companies of the same sector or industry. Comparing stocks from two different sectors will tell you nothing because the business fundamentals will be so different that a high PE for one stock may actually be cheap for another. When you’re comparing financial ratios for two stocks, ask yourself three questions. Are most of the ratios better or worse for one of the stocks? Is that advantage for one stock consistent over the other? Is this information already priced into the stocks? For example, shares of one company may have decidedly better fundamentals than another but if it is also trading more expensively then the information is likely already baked in. One of my favorite ways to invest is just going sector-by-sector and finding the best stocks. By comparing stock fundamentals against the average for the sector, you can find the best stocks to buy and build a complete portfolio across each sector of the economy. 1:02 Two ways to compare stocks to buy 1:35 How to use financial ratios to compare stocks 4:40 How to compare stocks in a sector or industry Join the conversation in our private Facebook Group! https://ift.tt/2SL3NCQ Join the Let's Talk Money community on Instagram! https://ift.tt/336QCQl My Investing Recommendations 📈 📊 Check out the stock simulator and Get 2 FREE shares of stock worth up to $1000 each when you open a Webull investing account with a $100 deposit! 🤑 https://ift.tt/2M1qRd4 Free Webinar – Discover how to create a personal investing plan and beat your goals in less than an hour! I’m revealing the Goals-Based Investing Strategy I developed working private wealth management in this free webinar. Reserve your spot now! https://ift.tt/2TbmwcK SUBSCRIBE to create the financial future you deserve with videos on beating debt, making more money and making your money work for you. https://ift.tt/2zsdiOe Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through debt payoff strategies, investing and ways to save more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps. #stocks #stockstowatch #investing Let's Talk Money! with Joseph Hogue, CFA