The News GodThe News GodThe News God
  • Politics
    • Trump
  • News
    • Wars & Conflicts
  • Business & Finance
  • Lifestyle & Health
  • Law
  • Sports
  • Tech & Autos
  • Home & Garden
  • Videos
  • More
    • Travel & Tour
    • Education
    • Entertainment
      • Biography
      • Net Worth
      • Famous Birthdays
    • General
    • Pets
    • Blog
    • About Us
    • Disclaimer
    • Media Partners
    • Why You Need to Read Business News Everyday
    • Authors
    • Terms of Service & Privacy Policy
Reading: How To Know What Stocks To Buy
Share
Font ResizerAa
The News GodThe News God
Font ResizerAa
  • Politics
  • News
  • Business & Finance
  • Lifestyle & Health
  • Law
  • Sports
  • Tech & Autos
  • Home & Garden
  • Videos
  • More
Search
  • Politics
    • Trump
  • News
    • Wars & Conflicts
  • Business & Finance
  • Lifestyle & Health
  • Law
  • Sports
  • Tech & Autos
  • Home & Garden
  • Videos
  • More
    • Travel & Tour
    • Education
    • Entertainment
    • General
    • Pets
    • Blog
    • About Us
    • Disclaimer
    • Media Partners
    • Why You Need to Read Business News Everyday
    • Authors
    • Terms of Service & Privacy Policy
Follow US
  • About Us
  • Authors
  • Advertise
  • Contact Us
  • Disclaimer
  • My Bookmarks
  • Terms of Use & Privacy Policy
  • Media Partners
The News God > Blog > Business & Finance > How To Know What Stocks To Buy
Business & Finance

How To Know What Stocks To Buy

Rose Tillerson Bankson
Last updated: August 9, 2022 10:27 am
Rose Tillerson Bankson - Editor
June 12, 2021
Share
4 Min Read
Teacher presenting investment strategy and benefits to become a successful business investor
SHARE

As a beginner investor, it can be tricky to know what stocks to buy.

Contents
What the Heck Is a “Stock” Anyway?Key Metrics That Every Newbie Investor Should Know Before Buying StockP/E RatioPEG RatioPayout RatioKnowing What Stocks to Buy Takes Time

Do you go with the herd? Do you buy whatever stock seems popular on television at the time? Do you ask your buddy who just got started himself?

For the record, we don’t advise you to do any of those things.

Instead, as a beginner investor, it’s important to understand key metrics that help you understand how a stock performs or will perform in the future. Although, this requires research.

Related Posts

WooCommerce
Exploring Advanced WooCommerce Shipping Solutions for E-commerce
What The Ultimate Digital Customer Experience Should Look Like
6 Effective Offline Marketing Strategies for Small Businesses
5 Things to Ensure Your Insurance Provides Financial Safety

Stick around to discover the key metrics you should know as a newbie investor.

What the Heck Is a “Stock” Anyway?

Before you can start investing in stocks, it’s important to know what a stock actually is and how it can help you. So, what is a stock anyway?

A stock is basically a piece or a “share” of a company. Each share is given a price based on what the company is worth.

A company will issue shares to investors to raise money. The stock market allows you to buy publicly traded companies like Apple, Disney, Google, or Walmart.

Whenever you purchase stock in a company like the ones mentioned above, you become part-owner of that company. For example, let’s say a stock had only 100 shares. If you bought one share, you would own 1% of the company.

Now, that’s not realistic, but it gives you a sense of what stocks are and why they are important investments for your future. To learn more about investment tips, we suggest checking out kjtradingsystems.com.

Key Metrics That Every Newbie Investor Should Know Before Buying Stock

When you consider buying stocks, it’s better to understand how to identify a wonderful business rather than identifying cheap stocks. After all, if you’re thinking about investing, you should be considering a long-term approach.

A wonderful business will usually have good long-term performance — even if it’s at a higher valuation. Conversely, buying cheap stocks from companies that haven’t established long-term success usually doesn’t work out for most investors.

To identify if a business is wonderful or not, you’ll have to understand three key metrics:

P/E Ratio

The price-to-earnings ratio is a valuable metric for evaluating a wonderful business. To calculate, divide the company’s current share price by its past 12 months of earnings. Additionally, you can use the projected earnings for the next 12 months to calculate a company’s future P/E ratio.

PEG Ratio

The PEG ratio or price-to-earnings-growth ratio sort of levels the playing field for wonderful businesses that fall short in their P/E ratio. To calculate the PEG ratio, divide the P/E ratio by the company’s growth rate.

For instance, a company may have a P/E ratio of 24 and a growth rate of 12%. Therefore, the PEG ratio would be 2.0.

Payout Ratio

The payout ratio provides the annual dividend rate that gets expressed as a percentage of its earnings. That can help you determine the company’s dividend stability. For example, let’s say a company paid out dividends of $2 per share last year, but they earned $4, the payout ratio would be 50%.

Knowing What Stocks to Buy Takes Time

Understanding what stocks to buy takes time and practice. It’s just like anything else. However, if you dedicate yourself to understanding the three metrics from above to evaluate stocks, you’ll be on your way to owning pieces of some wonderful businesses.

For more information about stocks and more, please check out our blog.

5 Things to consider before buying a Motor Insurance
Crypto App Valora Becomes Independent
Discover the Top Strategies to Future-Proof Your Brand
A Guide for Business Owners: How To Appeal To Gen Z Consumers
Decoding the Power and Potential of Wrapped Tokens in Ethereum
Share This Article
Facebook Email Print
Share
What do you think?
Love0
Sad0
Happy0
Sleepy0
Angry0
Dead0
Wink0
Previous Article 5 Important Things to Do After a House Flood
Next Article Quelling the Dumpster Fire: How to Repair Your Social Media Reputation In 8 Easy Steps

Latest Publications

Kenya Bus and Train Accident
At Least 4 Killed and Dozen Injured After Train and bus collide in central Kenya
News
August 7, 2025
Kenya Plane Crash
Six killed In Kenya’s Light Aircraft Crash
News
August 7, 2025
Valedictorian’s Mother and Tutor Caught Stealing Exam Papers
Mother and teacher steal exam papers to help student become valedictorian
News
August 5, 2025
World’s Oldest Baby Born from 30-Year-Old Frozen Embryo
World’s oldest baby born from 30-year-old frozen embryo
News
August 4, 2025
Kenyan mental health activist claims to be Elon Musk's eldest son
Kenyan mental health activist claims to be Elon Musk’s eldest son
News
August 7, 2025

Stay Connected

235.3kFollowersLike
69.1kFollowersFollow
11.6kFollowersPin
56.4kFollowersFollow
136kSubscribersSubscribe

You Might also Like

Transform Your Ride: The Benefits of Investing in Custom Car Wraps Have you ever wanted to give your vehicle a unique and eye-catching makeover? Perhaps you're looking to promote your business by turning your car into a mobile advertisement. Whatever your motivation, custom car wraps offer an array of benefits that go beyond mere aesthetics. In this article, we explore the transformative advantages of investing in custom car wraps and why they could be the perfect solution for your vehicle. What Are Custom Car Wraps? Custom car wraps are large vinyl graphics or decals that are applied directly over the original paint of your vehicle. They can cover the entire vehicle or just a portion of it, depending on your design preferences and needs. These wraps can be fully customized with any design, color, or texture you desire, offering endless possibilities for personalization. Benefits of Custom Car Wraps Custom car wraps provide numerous advantages. Let's explore these benefits to see how they can enhance your vehicle. Aesthetic Appeal Custom car wraps can make your vehicle look amazing. They turn plain cars into cool rides with vibrant colors and designs. You can pick any color you like, add patterns, or even put your logo on it. This means your car will stand out on the road. It's a fun and easy way to give your car a fresh look without a paint job. Plus, if you're searching for vinyl wrap near me, you can find local shops that offer great wrap designs. A simple wrap can make your car feel new and special. Protection for Your Paint Custom car wraps help protect your car's paint. A wrap covers your car's original paint like a shield. This means your paint stays safe from scratches, dings, and sunlight. The wrap takes all the damage instead of your car. So, your car looks new and shiny for longer. If you want to keep your car looking good, a wrap is a smart choice. Plus, with vehicle transformation, your car gets a new look and stays protected at the same time. It's like giving your car a cool, new outfit that also keeps it safe. Cost-Effective Customization Custom car wraps are a great way to change your car's look without spending too much money. Painting a car can cost a lot, but wraps are cheaper. You can choose any design you want, and it will make your car look cool. Plus, if you get tired of the design, you can remove it and try something new. This way, you don't have to buy a new car to get a fresh look. With a small vehicle wrap investment, you can give your car a brand-new style that stands out. It's a smart way to keep your car looking good and save money at the same time. Advertising Opportunities Custom car wraps turn your vehicle into a mobile billboard. As you drive around, people see your wrap with your business message. It works like an ad that moves with you. This can attract attention wherever you go. Car wraps are cheaper than big ads on billboards or ads in newspapers. You get a lot of views without paying for expensive ad spaces. Wraps last a long time, so your ad stays visible for years. Small businesses can gain lots of exposure without spending much. It's an easy way to reach many people daily just by driving around. Versatility and Creativity Custom car wraps offer endless possibilities for personal expression. You can select from a variety of designs, textures, and finishes to create a one-of-a-kind look that truly reflects your personality. Whether you prefer a sleek matte finish or a bold, glossy design, the options are virtually limitless. You can change your wrap whenever you want, making it easy to keep up with trends or seasons. Plus, if you have a business, you can use wraps to creatively advertise your brand. The ability to frequently update your vehicle's appearance means you're not stuck with one look forever. Custom car wraps give you the freedom to be as imaginative and innovative as you like, ensuring your vehicle always stands out. Easy Maintenance Custom car wraps are super easy to take care of. You don't need special cleaners or tools. Just use soap and water to wash it. It's fast and simple. Unlike paint, wraps don't need waxing. This saves time and effort. If the wrap gets dirty, you can clean it quickly. Also, wraps are durable and stay looking good for a long time. If a part of the wrap gets damaged, you can replace just that part. This means less hassle for you. Overall, maintaining a wrapped car is much easier than maintaining a painted one. Eco-Friendly Option Custom car wraps are eco-friendly. Traditional paint releases harmful chemicals. Wraps don't. They're vinyl, which is safer for the environment. Applying a wrap uses less energy than painting. Wraps are removable. When you take them off, they don't harm the car. This is good for resale. Wraps can help conserve resources. They're a green choice for car lovers. Quick Installation Process One of the impressive benefits of custom car wraps is their quick installation process. Unlike a full paint job, which can take several days or even weeks to complete, car wraps can be installed in a fraction of the time. Professional installers usually finish the work within a day or two, depending on the complexity and size of the wrap. This means you don't have to be without your vehicle for an extended period. Additionally, the installation process is mess-free and doesn't require hazardous chemicals or extensive prep work. This convenience makes car wraps a popular choice for those looking to customize their vehicle swiftly and efficiently. Learn All About Custom Car Wraps Custom car wraps are a cool way to make your car look great. They protect your paint, save money, and let you change your car's style whenever you want. They also help advertise your business. Wraps are easy to care for and quick to install. Plus, they are better for the environment than paint. So, if you want to give your car a new look, consider getting a custom car wrap. Did you find this article helpful? Check out the rest of our blog.
Business & Finance

Transform Your Ride: The Benefits of Investing in Custom Car Wraps

May 26, 2024
Presenting: Rey Rey Rodriguez – Visual Artist, Poet and Founder of “The Mind of Rey Rey.”
Business & Finance

Presenting: Rey Rey Rodriguez – Visual Artist, Poet and Founder of “The Mind of Rey Rey.”

January 25, 2021
Ever-Changing Trends in Digital Finance: The Bitcoin Chameleon
Business & Finance

Conditional Checks and Verification Techniques: Bitcoin’s Advanced Scripting Mechanisms

November 10, 2023

A Guide to Screen Printing on T-shirts

February 29, 2024
Show More
© 2025 Thenewsgod. All Rights Reserved.
  • About
  • Contact Us
  • Terms of Use & Privacy Policy
  • Disclaimer
  • Authors
  • Media Partners
  • Videos
Welcome Back!

Sign in to your account

Username or Email Address
Password

Lost your password?