How To Choose The Most Valuable Stocks

Lao Zhang recently saw that the stock index went up vigorously, but several stocks in his hands still remained unmoving. He could not help making money with the big market, but only comforting himself by losing time and losing money.

So many years in the stock market, let Lao Zhang fully understand the importance of investing in the stock market to analyze the fundamentals of listed companies.

He pays more attention to the profitability and asset structure of listed companies. He also pays much attention to information about restructuring or policy investment income.

But even so, we often buy stocks that do not rise or even fall, so Lao Zhang decided to focus on the value of stock investment in the time of this stock market shock.

Earning index does not make money

Deep thinking on company growth

Lao Zhang reviewed his investment record and found that the highest increase in stocks he bought did not exceed 20%. After the "5. 30", many stocks doubled or even doubled.

Is it because his investment philosophy is too conservative? Lao Zhang suddenly remembered the investment analyst who saw the day before yesterday. "Buying stocks should choose the most valuable listed companies."

Lao Zhang believes that the value of growth is nothing more than profitability. As long as we do not lose money or the fundamentals of listed companies are poor, we should have the possibility of growth.

Moreover, I am more confident in the analysis of the fundamentals of listed companies, so I didn't really think about it at that time.

Now think back, Lao Zhang feels that in a careful analysis of the growth value of listed companies, he may be able to find the answer he wants.

Lao Zhang found that many investors also attached great importance to the listed companies with high growth, hoping to get high returns through investing in the listed companies, but how to choose high growth listed companies is not easy.

Although some listed companies have bright future industry characteristics, they do not mean that all companies in the industry have grown well.

Some companies have significantly improved their performance in the short term, but it is hard to predict whether they will have sustainable growth potential. For example, the "private enterprises", which are listed on the backdoor and restructuring, are also growing up and down.

If there has been media coverage, *ST resumption of listing in April this year, long after the resumption of trading, the stock price has surged 1000%, suspended by the exchange.

Its first quarter results show that earnings per share (EPS) is as high as 4.73 yuan, but only 0.02 yuan after deducting.

Such a listed company is not the real growth of the listed company, perhaps a temporary debt restructuring has improved the company's performance, but the future is not necessarily a good growing company.

How to choose

Listed companies with growth value

Growth is the soul of the listed company and the life of the stock market. It is a very important index to measure the operation and development prospects of the listed companies.

The growth rate of main business and the growth rate of net profit are two important financial indicators reflecting growth.

The former reflects the changing trend of the scale of enterprises, while the latter reflects the change of operating efficiency.

The main business growth rate is the main channel for the company's profit growth. It can reflect the company's main business performance, which is more important than simply analyzing the growth trend of net profit.

But through investigation and analysis, Lao Zhang found that when choosing the most valuable stocks, first of all, we should pay attention to whether the main business income and net profit increase synchronously.

Because from the recent growth of listed companies, most of the growth listed companies are prominent in their main business.

The sustained growth of main business revenue is the main reason for the growth of net profit of the growth listed companies, such as the small commodity city and Suning Appliance.

Second, the total capital stock expands rapidly, and the stock with diluted earnings per share should also be paid attention to.

The listed companies with good growth still maintain better performance after equity dividends. EPS is also diluted but there is no obvious decline, such as Guizhou Moutai and CIMC, which have many outstanding business shares for many years.

Although these listed companies have been expanding for many years, they still maintain a high level of EPS.

Attention should also be paid to the industry leader, but this is not the only indicator.

From the perspective of market competition, the larger the scale and the stronger the capital strength of an enterprise, the stronger its long-term competitiveness.

On the one hand, economies of scale can produce more marginal benefits, so that they have advantages in cost and price; on the other hand, huge capital strength can enhance the company's ability to resist risks and enable them to invest more funds in developing fierce market competition.

According to the general result of market competition, the largest number of enterprises in the industry are giants. Most of the small and medium-sized enterprises are not annexed or eliminated, so the first few in the industry have steady growth.

Most growth

That is the most developed aftereffect.

From the analysis of the industry background of high growth listed companies, most of the listed companies with relatively high growth have strong competitive power, excellent products, market share and product extension, but they can not fully develop the listed companies based on this index.

Although some listed companies are not the leading companies in the industry, their development potential and motivation can also be actively excavated.

Looking back on his investment experience, Lao Zhang found that although he paid attention to the analysis of fundamentals and paid attention to the profitability and asset structure of listed companies, he did not understand the growth of the industry and the growth of Listed Companies in the industry.

At the same time, in the past, I saw that some listed companies were actively involved in the reorganization or policy investment income information, and did not analyze whether the listed company had limited growth space and insufficient growth potential.

Then, after restructuring or short term policy investment income, stock prices will fall, especially for investors such as Lao Zhang, who invest mainly in medium and long term investments.

The investment style of each investor is different. It is the large index stocks that choose prudent investment, or the restructured stocks with large risks and returns are different from person to person.

But the fact shows that many investors who choose to grow stocks and tap growth companies and hold them for a long time often achieve greater profits from the development of the stock market.

From the perspective of future market investment, we should take account of many factors such as the industry status, the governance of listed companies, and the relative price of listed companies when mining stock investment with growing value.

Those fake growth companies that are based solely on restructuring or short-term policy investment gains instead of main ones need to be taken care of.