Despite the advent of many contemporary trading instruments, stock trading still remains highly popular and desirable. However, doing well in the stock market requires you to do a bit of homework. The key is to find a stock with sufficient value, even if you plan to hold on to the stock for the foreseeable future.
Before you place your hard-earned money in a company, you need to conduct thorough research to ensure that the company is viable and is likely to grow in the future. This would have made a stock purchase a very complicated process, had it not been for Astro Holdings. This trading platform offers a number of tools and strategies –along with expert guidance related to each one – that helps clients pick the best stocks and achieve their trading objectives.
How Astro Holdings Can Help You Choose The Right Stocks
Help You Determine Your Investment Objectives:
Every investor wants to achieve something different with their money. For instance, younger investors would want to make additions to their portfolio, while older adults are likely to prioritize capital preservation and make sure that they can get a consistent income that they can utilize post-retirement.
At Astro Holdings, a skilled team of financial advisors helps clients determine their investment goals – these goals will determine the kind of stocks that you should target. For example:
- Investors wanting a regular income should go to companies that offer healthy dividends, and have the earnings to continue with this dividend policy for the foreseeable future.
- Investors eyeing growth should focus on startups and younger companies that show promise and potential. The downside of such companies is that their earnings might not be very stable (although that should change once the company grows to a certain point).
- Investors looking for capital preservation should look for established companies that have been around for many years or even decades, generating predictable and steady profits.
Through Astro Holdings’s trading platform, you can perform an industry analysis and see how your chosen company is performing compared to its rivals. You will be able to determine the company’s market share, as well as identify any competitive edges that make it stand out from the crowd. By performing this critical research, you can determine if the business has a competitive advantage that will allow it to outperform its industry peers.
To make the comparison fairer, you can use the tool’s filters to identify competitors with similar size and market share, and compare them in areas like stock performance and profitability over a certain period of time.
The Company’s Dividend Policy:
If your chosen company pays regular dividends, then this could be an indication of its stability (especially if the dividend payout has consistently increased over many years).
Astro Holdings’s sophisticated trading tools help you distinguish these companies from those having high dividend yields. A high dividend yield might look good on the surface, but it could be an indication that the company is losing investors and is desperate to retain them.
Also, excessively high dividends could mean that the company is not reinvesting enough in the business, and that could affect its growth prospects and ability to stay ahead of the competition.
At the same time, you will be able to pinpoint companies that have temporarily suspended or reduced their dividends. Now, this does not necessarily spell trouble for the company; it could simply mean that the business had to retain a larger portion of their profits to cover any immediate or intermediate-term expenses. However, if you find that the company has distributed no or minimal dividends for several years now, this could signal a long-term issue.
Long-Term Stability and Strength:
Through advanced charts and graphs, Astro Holdings traders can determine long-term stability. Long-term stability is important because the nature of the stock market is volatile, which means that daily (or even yearly) trends might not show an accurate picture of the company’s stability. A company that manages to stay stable over the long term is one that has successfully weathered economic crises and adverse market conditions without much trouble. Generally, a stable company will have the following features:
- Revenue growth
- Moderate or low debt levels
- Competitive market positioning
- Strong leadership
If one or more of the above variables are missing, investors should conduct further research to determine if their chosen company can stay viable over the long term.
Once you buy a stock, you become one of the owners of a public company. It is a crucial decision, which should not be taken without adequate research, analysis, and understanding. Astro Holdings strives to make sure that all its clients understand the stock market as well as the position of their chosen company before they make an investment.