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9 Tools To Use While Researching Stocks

How Do You Know If a Company Will Be a Good Buy? 

Beating the market is a feat that almost every investor seeks to accomplish. Sometimes, the markets are increasing with no fundamental change. In these markets, it is relatively simple to buy a stock with a lot of momentum and ride those gains. However, when fundamentals become the driving force behind stock price movement, it can be much harder to beat the market.

So how do you beat the markets when fundamentals matter? If you are a new investor, it can be a bit confusing when it comes to researching a company. Using the Stratosphere company search feature is a great tool that can help propel your research into the right direction. Our company search feature is comprised of 9 sub tools, all of which include important data to help your research endeavors.

1) Financial Statements

Understanding the financials of a company is integral to your success as an investor. Balance sheets, income statements, and cash flow statements are three pieces that will help you decide if a company is worth investing in.

The financials tab on the company search feature will allow you to access all three of these financial sheets, with a 10-year history on each metric. Furthermore, you are able to change the statements from annual to quarterly statements. The small graphs included on the page will help you visualize the changes in their respective values, clicking on these small graphs will enlarge them, and provide an interactive view. Not only are you able to access all this data, but you are able to export the data to excel if you desire.

Tools Demo

2) Charting

Many investors will initially gravitate towards the stock price graph. Although it can have its uses, the stock price is not a true indicator of company strength. The past performance that is shown on the graph is of no indication of what the future for the stock holds. However, it can be a good tool in helping to find good buying opportunities or comparing gains against other stocks or markets.

Using the charting tool on the Stratosphere company search feature is rather simple, just insert your desired stock ticker and the chart will appear. From there, you are free to alter the graph in many ways, including:

  • The duration of the graph

  • The frequency in which data is displayed

  • Adding events, such as dividends, splits, or earnings

  • Changing the graph from price to percent or dollar change

  • Having the graph be shown in a line, area OHLC, candlestick, or hollow candle stock

  • Adding or removing volume display

  • Adding up to 4 other companies to the graph for comparison, or adding any of the five major north American indices

  • Full screen view of the graph

Tool Chart

Using the chart in terms of research can be very helpful, as it will help you notice dips in the stock price which will allow you to buy more shares while the stock is discounted. As long as the company is still fundamentally strong, investors should see these dips as buying opportunities instead of worrying and potentially selling their shares.

3) Key Ratios and Metrics

In addition to financial statements, there are a ton of ratios that are incredibly helpful for investors. Stratosphere provides not only all the ratios you could ever need, but there are also interactive bar graphs, and pie charts to help you visualize these ratios and metrics. Included in these ratios are:

  • Income statement ratios and growth rates

  • Profitability ratios

  • Liquidity ratios

  • Management effectiveness

  • Efficiency ratios

  • Valuation Ratios

  • ‘Price to’ comparisons

  • Dividend ratios and growth rates

In total, you will be provided with 37 ratios, along with the graphics, to help you research and understand the financials of a company.

Ratio Overview

4) Analyst Insight

Sometimes you just need some reassurance, or someone to bring you back down to earth before you make your decision.

The analysts tab will allow you to see what experts are thinking about a company.

This analyst’s tab includes information about:

  • Analyst rating

  • Analyst recommendations

  • Recommendation history

  • Industry rank

  • Earnings

  • Current target price

  • Target price history

  • Consensus EPS estimates

  • Earnings history

With these analyst insights, you will have a multitude of information at your fingertips to help you with your research.

Included in this tab is a plethora if visuals including graphs, charts, and tables to help you see the data you are reading.

Insiders Information Tool

5) Industry Competition

In most cases, it is important to know the competition going against the company you are looking at. The industry tab includes an interactive graph, and table, so you can see the competition.

The graph is set to market cap by default, but you can change the graph to a price graph with all the companies included.

The table includes all of the companies, with drop down menus including extra metrics on top of the metrics shown on the chart. If you prioritize a certain value, such as profit margin, toggling the arrows beside said metric will sort the table in ascending or descending order.

To make it easy on the eyes, the company you searched up will be in bold the entire time.

Industry Comparison Graphic

6) Insider Trading

The insider tab will allow you to see the number of shares traded, as well as how many transactions were buys or sells, in the last 3, 6, or 12 months. Furthermore, the chart provided will display all of the transactions. You can filter by name, transaction type or year. Like other charts on Stratosphere, the arrows will display that value in ascending or descending order.

Insider Trading Graphic

7) Dividend Reports

Dividend can tell an important tale to the long-term investor. The dividend tab will help you decide if the dividend is heathy, as well as see the history of dividends paid by the company.

The historic and upcoming dividend tables work the same as the other tables on Stratosphere, but these table will tell you the:

  • Ex – Dividend date

  • Amount

  • Frequency

  • Payment date

  • Record

  • Dividend announcement date

  • Dividend type

Dividend Reports

8) News Reports

In the world of investing, news can have a huge influence on stock prices. In order to be on the ball, Stratosphere offers early and up to date news from whichever stock you’re looking for. News is organized by date and clicking on any of the titles will lead you right to the original news source.

News Reports Graphic

9) Company Profile

Sometimes you are still looking for a bit of extra information, and the profile tab will allow you to find that. On this tab, you will find a lot of extraneous information. A business description, and other details such as their website, email, telephone, are a few examples of the information provided. The website link may be helpful to nearly every investor, as the investors relation page can be found on company websites. The investor relations page is filled with more information, such as presentations, which will allow you to gain qualitative knowledge about the company’s business model, and how it runs.

Corporate Profile Graphic

The Bottom Line

Researching stock can be a difficult task. Fortunately, the combination of our stock screener and company search tool create a tandem of tools to help you find strong compounding companies, and they are both on the same platform. This means you can end your continuous tab switching and have all the data you need presented to you in a clean and gorgeous format. Hopefully the usage of these two features will allow you to find stronger companies and take your portfolio to the stratosphere.