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Things to know before buying starbucks stock

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.

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Learning More about First Solar Stock

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.

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What You Should Know about Chevron Stock

Finding the right stock to invest in takes patience and an understanding for how a business has performed in the past, in addition to how it may be projected to perform in the future. Evaluating trends and knowing when to buy or sell will allow new investors to build a successful portfolio. Chevron Corporation (NYSE: CVX) is one of the Big Four oil companies on the market and, with such widespread brand recognition, may gain the attention of those looking to purchase stock for the first time. Learning about Chevron stock and educating yourself on the ins and outs of the stock market will help you while you consider whether or not to buy.

The Numbers Game

Chevron has been trading between a high of $135.10, set near the end of July 2014, and a low of $98.88, set at the end of January 2015, over a 52-week period. At the end of February 2015 the stock was hovering around $108.00 with a trailing price-to-earnings (P/E) of 10.71 and a forward P/E projected at 15.94 for the fiscal year ending December 31, 2016. The stock has seen a 52-week change of -6.15%, but also has a 200-day moving average around $115.00.

What Do These Mean?

Sorting through the numbers related to a certain stock gives you insight into how it is currently performing, has performed in the past, and may perform in the future. However, it is important to remember that past performance does not necessarily carry over to the future. Various metrics used by investors, some of which include the following, allow you to evaluate a stock and determine whether it would make a good buy.

  • Trailing P/E – This is based on past earnings over the previous 12 months. This ratio is calculated by dividing the current share price by the trailing 12 months’ earnings per share.
  • Forward P/E – On the other hand, this ratio is used to forecast earnings for the stock moving forward. It is calculated by dividing the market price per share by the expected earnings per share.
  • 52-Week Change – This indicator shows how the stock is currently performing against where it traded a year ago.
  • Moving Average – This can be calculated over any time period, usually 50, 100, or 200 days. The moving average adds up all data points for the time frame, and then divides by the number of days being charted.

Buying Chevron Stock

As oil prices continue to fluctuate, so does the price of Chevron stock. This leads Bidness, Etc. to believe1 new investors should avoid the stock, while an analyst at Forbes feels2 that at the right price it is a smart investment. Although it is risky to purchase stock on the decline, doing so can also lead to gains if it recovers.

It is important to come to your own decision about a stock based on the numbers you see and the knowledge you have about what performance metrics mean to the market. Start your education and learn more about investing in your financial future by contacting a representative of DriveWealth Education at 510-772-7444.

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Are You Thinking About Investing in Yahoo Stock?

Yahoo stock has a firm foothold in the stock market, built on its history as one of the first search engines. If you are thinking about adding Yahoo or any other stock to your investment portfolio, start by educating yourself1 and developing a plan. Take some time to consider a company’s essentials. As with any stock that interests you, begin by reading up on the company profile and the performance of top management, along with studying the financials.

The Yahoo Profile — Pros and Cons

Clearly, Yahoo’s former place in the search space has long been overcome by Google. Today, when someone wants information, it is not uncommon to hear “just Google it.”

There is, however, more to the story. Consider that in January 2015, Google was reportedly losing search market share, while Yahoo’s share has grown.2 How should you interpret such a seemingly positive trend? The answer is: put it into context.

According to many analysts, the positive growth in search share is the recent decision by Mozilla to use Yahoo as Firefox’s default search engine in the U.S.

Much-discussed Yahoo CEO Marissa Mayer has worked to give the company a facelift, with new goals and new priorities, like gaining in mobile and ad revenue. Recent moves indicate she intends to grow media presence for Yahoo,2 with market rumors of a potential interest in acquiring CNN from Time Warner Cable, Inc.2

Many of Mayer’s moves have been criticized, but Yahoo made one very important investment that now accounts for the majority of their current market value – their stake in Alibaba Group Holding Ltd. (NYSE: BABA) now worth $40 billion.2 The Chinese search giant has many supporters in the research analyst community, and many analysts view Yahoo as a derivative play on BABA. Note the recent spinoff announcement.

Making a Choice

Yahoo presents a complex picture to possible investors looking to make wise choices and build their financial profile. If you are new to the market, take steps first to educate yourself on its workings, and next, on each stock you are considering.

Take advantage of a practical online educational tool. A site like Drive Wealth Education offers guidance in how to develop an investment plan and learn about evaluating stocks. You can practice your new skills without risk by creating a free practice account for virtual investing, before you take the plunge.

Once you have a picture of the pros and cons for a given company, add in your personal financial profile and future financial goals. What is your budget for investing? How much can you safely risk on a stock? Think about whether you want to invest for the long-term or for a short-term result. Is the stock you are considering one that is likely to perform over the long haul, or is its current strength more suited to your short-term goals?

Arm yourself with knowledge and enlist a strong ally in your investment planning. Contact us today for help from Drive Wealth Education.

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Things to Consider about Verizon Stock

If you are considering Verizon stock as the next addition to your portfolio, it is essential that you know how to evaluate a stock and decide if it’s performing in a way that fits with your financial needs. Start by investing a little time in advancing your stock market skills, with some of the free coaching apps1 available online.

Verizon is a known name in the mobile device industry, right up there with AT&T. When investing in stocks, it is easy to get hung up on a brand name and assume it’s the right choice without doing adequate research. Look for investment insights from a variety of sources before making a move.

Here are some data points to consider in evaluating a stock buy of Verizon, to get you started thinking about the best decision for your future.

The Pros

  • Since 2009, Verizon has seen steady increases in the price of its stock.2
  • Verizon is more than a cell phone company. It also provides Internet and cable-alternative TV services, both ever-growing industries. Its mobile phone services, alone, have strong growth potential,3 as more and more users take advantage of communication on the go. Verizon has recently divested itself of its Western landline holdings to expand its Eastern footprint in wireless mobile communications.4
  • The increased need for data services reflects well on Verizon as they expand their menu of choices. Along with other similar companies, Verizon seeks to meet the changing needs of consumers, including their latest roll-over data endeavor.
  • Verizon has demonstrated consistent increases in dividends since 2009. These consistent dividends expand the potential (yield seeking) retail investor universe for Verizon. Technology is always changing, and the company has a history of responding to new technology first, such as with 4G LTE. When AT&T was only offering this service in about 40 markets, Verizon offered it in 400 markets.

The Cons

  • Verizon’s churn rate as of fourth quarter 2014 was projected to increase, despite a strong past record.5 The churn rate is the rate at which consumers end their mobile phone service, or switch to another company for service.
  • Financial forecasts aside, consumer behavior is a telling indicator when evaluating a company’s stock. Before you rush out and dive into Verizon, keep researching. Remember to look at the broader picture, including examining past trends and evaluating future trend forecasts from a variety of sources.

Here at Drive Wealth Education, we are waiting to assist you in learning how to invest your money. There are multiple investment options out there. We provide a helpful resource that will build your confidence and knowledge, leading you to the right investment choices for your particular needs. Whether you choose Verizon or other stocks, or if you simply want to learn some key investment tactics, we are here to help. Contact us today to learn more about Drive Wealth Education.

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Things to know about buying yelp stock

Wise stock market investing presents a challenge for average consumers hoping to build their financial profile. If you want to try your hand at the market, take a few easy steps first to educate yourself on its workings, and next, on each stock you are considering.

The Stock Market Basics

If you’re considering investing in Yelp stock or any other company, chances are you already read financial news and opinion. If not, start right away, and review some profiles of specific companies. The more you read, the more familiar you will become with investment terms and the differences among possible businesses.

When it comes to the actual process of picking a stock and investing, it pays to enlist the help of an online educational tool. Use the free apps from a site like Drive Wealth Education to create an investment plan, to learn about evaluating stocks, and to create a practice account for virtual investing, before you use your own hard-earned dollars.

Evaluating a Company

Once you identify an interesting business, you can delve further into its background and look for indicators of future performance. Read everything you can about Yelp or another attractive company. When you narrow down your options to a few possible choices, apply the basic stock market rules to evaluate a stock pick.

Before investing, you need a firm grasp of the terms used by analysts, in order to glean useful information from their statements. Look at the company’s P/E ratio, or price to earnings ratio. This is measured by dividing the share price by the net annual income. The result is a number that can be compared to the broader market P/E ratio, to decide if your pick is more expensive or less expensive than the market.

Let’s consider stock in Yelp, a very well-known brand name. Monitor the latest quarterly pronouncements from financial authorities for a balanced view of the company’s pros and cons, and you’ll learn:

All in all, Yelp is a perfect example of the challenges in picking stocks. You probably know the site as a review source for information about restaurants and other local businesses you frequent. You may even enjoy using it as a social site where you can discuss reviews with fellow users.

As an involved Yelp visitor, or as a newly-informed reader of the analyses we’ve mentioned, you know that Yelp is working to build its mobile profile for providing local information.

Once you have a picture of the pros and cons for a company, add in your personal financial profile and what your goals are for building it. What is your budget for investing? How much can you safely risk on a stock? Think about whether you want to invest for the long-term or for a short-term result.

Arm yourself with knowledge and enlist a strong ally in your investment planning with help from Drive Wealth Education.

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Walmart Stocks

Looking into Buying Walmart Stock?

Working to secure your financial future can lead you on a fascinating journey. There are endless options out there, each with benefits and drawbacks. Investing in the stock market is one way to give yourself a financial cushion after retirement, but it requires some work to achieve stock market success. Start by educating yourself with helpful stock tips and learn how to evaluate a stock before you invest. Make a plan based on your new understanding and your budget, and you’ll be better positioned to win in the stock market.

 

 

Fundamentals of Stock Evaluation

 

The basic rule for starting your evaluation of a given stock is to look at the price to earnings ratio, or the P/E ratio. The simple formula divides the share price by the company’s net annual income. Next, look at the broader market P/E, and see if your potential stock pick has a higher P/E than the market. Lower than market P/E is going to be a less expensive stock, and the reverse is true for a higher than P/E stock.1 Evaluate the relative P/E ratios to the projected earnings growth for a given stock, to determine if the stock is cheap or expensive relative to its projected growth and P/E.

 

Keep in mind, a low price is not your only—or best—guide to choosing a stock. There are many equally important indicators that can guide you toward the right choice. Before you invest your hard-earned dollars, it pays to make use of a free educational source designed to coach you through the process.

 

Pros and Cons

 

Let’s take a closer look at Walmart stock to start thinking about pros and cons of investing in one well known company.

 

The Pros:

  • Walmart has consistently increased its dividends for over 40 years. In some periods they have even doubled. Although the growth may not always live up to expectations, the consistent pattern indicates stability.
  • Walmart’s payout ratios have followed a pretty consistent pattern as well, and they are still on the rise. In fact, they are following the same pattern as their dividends. In looking back on Walmart’s stock, you can see that payouts tend to go up, even if only slightly. You can also see that they have consistently paid out for many years.
  • Walmart serves 250M customers weekly in 27 countries, and experienced 30% growth in earnings per share from FY2010 through FY2014. 2

 

The Cons:

 

  • In some years, Walmart has lost ground in its payout ratio. 2
  • Recently, Walmart has been challenged to maintain its profit margins, and its record of strong growth has slipped.1

 

Whether you choose Walmart or another brand name stock for investment, remember that when you buy a stock, you are buying a business. Examine that business just as you would if purchasing the entire thing.1 Consider whether they are innovative and producing or developing new products that will be in demand in the future. Be prepared to pay more for a business that meets a higher standard of performance than others, but know that you are likely to reap a greater dividend or payout.

 

To learn more about stocks and investing, and to learn how to make the most out of the money you have available for investing, contact us today at Drive Wealth Education.


1. http://guides.wsj.com/personal-finance/investing/how-to-evaluate-a-stock/
2. http://seekingalpha.com/article/2689975-wal-mart-third-quarter-results-why-you-should-buy-this-stock
3. https://drivewealth.com/

What You Need to Know about Coca-Cola Stock

Making good stock investments may seem like an unattainable dream. There are so many stocks clamoring for attention that deciding which ones are worth the risk presents a complex challenge. Whether you are a new investor looking to enter the market for the first time, or you just want to brush up and sharpen investment skills, take advantage of reliable learning tools available for free online.

As with any investment, you need to examine a potential stock from all possible angles. No matter how big the name is or how popular the stock, it may not be right for you. Evaluate it based on your personal financial goals, your desire to hold stocks for the long term or short term, and your available budget.

Coca-Cola is a well-known global brand that has been a component of the Dow Jones Industrial Average for more than 25 years.3 A closer look at Coca-Cola stock reveals some pros and cons to keep in mind when deciding whether or not you will buy.

The Investment Cons

• Coca-Cola’s last quarter earnings may not inspire confidence. Net revenue was down compared to the other quarters combined. Many investors were scared off by this drop as earnings per share fell more than 10%, with a decline of 1% in volume in the U.S. Some of these results can be attributed to the effects of global currency fluctuations, as few companies have a broader worldwide presence. Some can also be attributed to the public’s waning interest in sugary drinks. However, competitors in this space remained strong, which leaves one to wonder where the problem lies.1
• Coca-Cola’s plans for the future include investing in other energy drink companies, while at the same time implementing a cost-cutting plan to boost productivity. It is unclear what will be the likely success of these efforts, and their overall impact on revenue and profitability.
• The price to gain access to Coca-Cola shares is more affordable than before, but it still carries a hefty price tag, currently trading for a price-to-book value of 5.42.2
• Coke is projected to show EPS of $2.03 for the full year 2014, down from 2013 at $2.08.2

The Investment Pros

• Coca-Cola boasts a highly stable track record over the long haul.
• Coca-Cola is established and has strong brand awareness in the global marketplace, including the higher growth emerging markets.

Whether or not you invest right now is a choice you have to make after careful research. Even knowing all you can about one company’s financial picture, you need to know the risks of entering the stock market. It rises and falls every day, often subject to unanticipated fluctuations in global currencies, political unrest, and other economic forces.2
Before you invest your money, contact Drive Wealth Education to learn more about evaluating stocks, so you can make an informed, sound decision.

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1. http://www.thestreet.com/story/13039617/1/what-to-expect-when-coca-cola-ko-reports-earnings-results-tomorrow.html
2. http://247wallst.com/consumer-products/2015/02/09/what-to-expect-from-coke-and-pepsi-earnings/