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Investing in the stock market is an exciting prospect. The right investment tips may help you meet your personal financial goals, like achieving a more fulfilling lifestyle, or building security for the future. At the same time, the risks of making a wrong choice and losing significant dollars are intimidating enough to discourage many from getting into the market at all.
Spend some time learning about the market before diving in, to build your confidence and gain a better understanding of the risks and opportunities. Take advantage of the free educational tools and apps on a site like Drive Wealth Education. You can learn how to plan your investing, improve your understanding of the market, and have a chance to practice new skills for no cost.
How to Evaluate a Stock Pick
When you consider buying a stock, you are actually considering buying that company. In every instance there are pros and cons. Any business is subject to influences beyond its control, like general economic trends, international political issues, and more. The only way to successfully assess a company and its stock is to look at the long view, over a period of time.
Learn how to compare a company’s price to earnings—or P/E—ratio to the overall market, to assess how expensive one stock is compared to others. Read the expert analyses widely available online for all levels of investors.
Start with the familiar when reviewing possible investments. Consider websites you use, or retailers you love. If you think about coffee—and, let’s be honest, most of us think about it every morning—chances are you think about Starbucks. Starbucks has become practically synonymous with coffee.
Over the last five years, Starbucks stock has gone up more than 250%. However, it stands to reason that what goes up must come down. So, the question becomes whether Starbucks is going to continue rising, hit a plateau, or drop. Factors to consider:
- Looking at past growth and growth potential, it is easy to see that Starbucks has its sights set for continued growth. They started out catering to coffee drinkers, and they continue to produce consistent sales growth, while expanding into new product offerings.
- Starbucks financial results consistently show a profit every year. Their expenses stay around the same, except for those areas in which they are testing expansion, and their bottom line is quite generous. A generous bottom line can be paid out in dividends.
- Future earnings growth will be affected by fluctuating costs in Starbucks’ fundamental commodities, coffee and milk. The unknown effects of climate change and coffee crop concerns could lead to a tug-of-war between rising prices to maintain margins, and limiting price increases to maintain customer loyalty.
- The result would directly impact earnings, and, depending on the trend (up or down), your very high-priced investment could lead to an equally high-priced fall.
Is Starbucks the right stock for you? Only you can make that call. Be sure to do your homework before deciding on this or any other stock. Get to know the basics of how the stock market functions, and read everything you can about your prospective company. Take full advantage of online educational tools, and start with a reasonable investment for your financial profile.
As consumers and corporations around the world look for new sources of sustainable energy, many are examining the viability of solar power. At the same time, new entrants in the stock market may want to quickly jump on the train and invest in solar companies. However, it is important to take a look at the market to see the options ahead of you before you make an investment. First Solar stock is one such option for newcomers and market veterans alike to monitor. Learning more about the price and recent performance of First Solar, as well as news surrounding the company, can help you make up your mind on whether or not to buy or sell shares.
About First Solar
First Solar (NASDAQ: FSLR), based in Tempe, Arizona, manufactures and sells photovoltaic solar modules with an advanced thin-film semiconductor technology. According to TheStreet, shares in the company are surging following positive news from its fourth quarter earnings report and its announcement that it is planning on starting a new company with SunPower and plans to eventually go public.1
How Is the Stock Performing?
For anyone interested in the stock market and monitoring the performance of various companies, keeping an eye on real-time quotes is a must. Over the last year, First Solar has been trading within a 52-week range of $39.18 and $74.84. As of the middle of March 2015, the stock had a price of $61.43.2 It also had a trailing price-to-earnings (P/E) ratio of 15.71, and a one-year target price estimate of $63.62 (footnote?) .
With a 52-week low over $20 below the mid-March price, the stock has seen significant bounce back to where it is sitting now. The small growth over the past days and weeks may point to the stock reaching some price resistanc at the current levelse, but there are other factors that have analysts talking about First Solar.
Variables That Will Affect First Solar Stock
Due to its strong fourth quarter earnings report, First Solar stock jumped up over 6.5% at the end of February. TheStreet also reports that earnings per share reached $1.89 during Q4, up from estimates of only 76 cents. When looking at yearly earnings, the figure nearly tripled from the 2013 Q4 report. Moving into the coming months, First Solar’s ability to retain some of the projects on its balance sheet will impact its profit and expense numbers (not sure what this sentence means).
At the same time, it has been reported that Apple has committed $848 million in clean energy from the company’s 2,900-acre California Flats solar project (is this a First Solar project – should be more clear, and footnoted. New opportunities for First Solar will also play a role in whether or not there continues to be a rise in the price of its stock.
Learning more about the state of the stock market and different investments you can make allows you to smartly build your portfolio. It is very challenging to find success investing in the market without having an understanding of what determines a stock’s price and the effects daily business has on it. Get started on the road to improving your financial future, by signing up with the experts at DriveWealth today, and call (510) 772-7444.
- Fukushima, Kurumi, “First Solar (FSLR) Stock Surging Today on Strong Fourth Quarter Profit,” TheStreet, 25 February 2015, Web, 18 March 2015
- “First Solar, Inc. (FSLR),” Yahoo! Finance, Web, 18 March 2015
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