- P/e ratio – is it low or high for this particular company and for similar companies in the same industry
- The percentage of institutional ownership
- Whether insiders are buying and whether the company itself is buying back its own shares. Both are positive signs
- The record of earnings growth to date and whether the earnings are sporadic or consistent (the only category where earnings may not be important are asset plays)
- Whether the company has a strong balance sheet or a weak one (debt-to-equity ratio) and how it’s rated for financial strength)
- The cash position. With $16 in net cash, I know Ford is unlikely to drop below $16 per share – floor of the stock Read more...
By: La Papillion
Here's a checklist from Peter Lynch's book, One up on wall street:
Stocks in general: