What are some good stocks to invest in 2018 ? When you decide to buy stock, then there are several things that you need to consider first. Choose the right company for investment can sound as great first step for build the portfolio. Keep in your mind, that when you buy a stock from a company, this means that you are become owner from the company.
Guide to choose what are some good stocks to invest in 2018
As the short term market movement get aside trend, your investments value are depending or from how healthy the business is. Here is how you can choose stock to invest and find out what are some good stock to invest in .
- Buy on what you know. Start with the industry or company that you are familiar with the name and reputation. The reasons are: this is best places for start your investment. You can avoid the hype as you can understanding how the companies plan to make their money.
- Consider for the VALUATION AND PRICE. The stock investment often looks something that “undervalued” and “cheap”. This because the investor paying in low price for each dollars from that company earns. This considered as stock price to earnings ratio or P/E. The P/E that under 14 is categorized as cheap and P/E that beyond 20 is categorized as expensive.
The most important thing knows the kind of stock that you are discussing about. Company that predicted will grow in fast will be more expensive rather than established company that grow slower. The cheap price does not means always good, and the expensive does not means always bad.
- Evaluate the health of the company financial. Start digging the information about the company financial report. You can check from look on to the revenue growth, find the dividends, check the bottom line and know how much the debt that the company has.
What are some good stocks to invest in 2018 Best of
If you considering investing stock for great rewards, then this best three good stocks can be your reference to next investment.
- Colgate-palmolive. This is company that report has stability enough. When there is high market crash in 2008 and 2009, this company just has declined their stock shares rate 30% from the peak level while the others company S&P 500 index has dropped more than 50% from their peak level. The company also becomes acquisition target that can make the stock value increasingly.
- Facebook. Facebook is chose for defensive stock pick. The stock price for the shares offered might seems too expensive with shares trading that 25 times from expected earnings. However, facebook is a company that grows in rapidly and strong so the price is not terribly high. Facebook has no debts and this company has stockpile cash over $32 billion include the marketable securities, cash and cash equivalents.
- Vertex Pharmaceutical. Vertex has good stock for investing in 2018 as it grows a lot. The company predicted to grow the earning 60% from the next years.
From the best top 3 what are some good stock to invest in 2018, you are able to start your increasingly earnings for your investment.