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How to Find the Right Company’s Stock to Invest In

Young man trying out stock trading on his laptop and phone

You’re interested in buying stocks – but don’t know which ones to invest in.

Apps for buying stocks from individual companies have become widely available, making it easy for individuals to start their investment journey. However, with plenty of stock options available, it can be overwhelming to decide on which company stocks are the right ones to invest in. So how do you make the right decision when stock trading?

There are a lot of things you should consider ahead of purchasing stock in a company. Before you get started on building your portfolio and selecting where you’d like to invest your money, be sure to follow these steps to help you pick the right stocks for you:

Do Your Research

There are a lot of variables that factor into a stock’s performance. Just because a company’s stock is doing well one week does not mean it’s going to perform well the next. Stock value can change significantly over a period of time, or even change on a moment’s notice.

Before you select the stock you’re looking to invest in, be sure to look at the big picture: is that company in an industry that has a good future? Are there good leaders in charge of the company? Do your research into how the company you’re looking to invest in stock from is performing in their various markets, and what experts are saying about their executive leadership to get a better understanding of whether they’re projected to grow.

Review the Trends

While stocks are somewhat volatile, there are certain trends you can look into to help you make a more informed decision as to which stocks to invest in.

First, you can look at the trends in the company’s earnings. If their earnings have grown over time consistently, you can be confident that they are performing well overall. Alternatively, if their earnings have been decreasing steadily for some time, you may want to consider another stock.

You can also look into how the company is performing as compared to others in the industry. Some industries are affected by outstanding circumstances companies can’t control – for example, many travel-related companies took a large hit in income during COVID-19. If you’re noticing a recent decrease in company earnings, look into it more and see if there are potentially industry-wide circumstances to blame.

Consult the Experts

Nobody can predict stock performance with 100% certainty – but it is still helpful to check in with the experts.

You can read about specific company stocks’ projected performances on plenty of online blogs and websites dedicated to this type of content. Here, people who are educated in the stock market and have experience in financial advising often share their thoughts about which stocks are coming up, and which ones to pass on when making your portfolio decisions.

Consult these resources to compare with your own research on potential companies to invest in. They can provide you with in-depth insight that may help to confirm your investments, or help you consider new options.

Once you’ve identified which company stocks you’d like to invest in, take a look at some of the best apps for buying stocks to help you get started immediately. Here, you can begin to grow your portfolio, and look into other companies to invest in over time.