Stock Recommendation: Key Steps and Applied Models
- DOI
- 10.2991/icetem-17.2017.23How to use a DOI?
- Keywords
- Stock market, Stock recommendation, Analysis model
- Abstract
It is common to select stocks for constructing a portfolio; however, not all investors understand how to evaluate stocks. Investing in a stock requires investors to understand the company by inspecting the company’s financial reports and announcements; also, investors need to be prudent to make a bid. This essay is going to demonstrate the steps of evaluating a U.S. public company’s stock, Keysights Technology, Inc. To generate a convincing stock research, analysists need to apply scientific methods. The idea is to set a target price of a company’s stock price and argue whether and why the price could reach the target price or not. Then, analysists need to glean supporting evidences to have a conclusion. For example, the Keysights Technology, Inc’s stock price was $37.56, and my goal price is $41.5; hence, my argumentation will be centered in presenting the company’s financial facts and applying financial models, which all supports that the company’s stock price could be likely to reach the target. Hence, price setting needs to be rational. Analysists need to know that a stock might be not worth recommending, if it merely has a limited potential growth; generally speaking, a least 10% potential price growth is a reasonable threshold of recommending stocks.
- Copyright
- © 2017, the Authors. Published by Atlantis Press.
- Open Access
- This is an open access article distributed under the CC BY-NC license (http://creativecommons.org/licenses/by-nc/4.0/).
Cite this article
TY - CONF AU - Ziwen Chen PY - 2017/11 DA - 2017/11 TI - Stock Recommendation: Key Steps and Applied Models BT - Proceedings of the 2nd International Conference on Education Technology and Economic Management (ICETEM 2017) PB - Atlantis Press SP - 105 EP - 108 SN - 2352-5398 UR - https://doi.org/10.2991/icetem-17.2017.23 DO - 10.2991/icetem-17.2017.23 ID - Chen2017/11 ER -