 Analyzing a Company's Stock
A Company's Finances
A strong financial position on the part of the issuing company can make a stock attractive to investors. Analysts typically look at the company's cash  flow to evaluate how much money the company spends, how much it brings in, and how much "free" cash is left after the bills are paid. Reviewing revenues, net income, and earnings per share helps analysts assess the company's history of sales and earnings growth. Another gauge of financial health is the amount of debt the company has compared to equity.
A Look at the Business
Stocks of companies that are leaders in their industries generally are desirable choices for a portfolio. Analysts look for profitable companies with limited competition whose products or services are valuable to customers.
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The Markets
Rates Go Unchanged
As expected... The U.S. Federal Reserve left rates unchanged last week and markets celebrated. Across the globe, national stock market indices  finished the week higher. In the United States, the Standard & Poor's 500 Index and NASDAQ gained more than 1 percent.
Not everyone was thrilled with the decision, however. Three Federal Reserve presidents cast dissenting votes. All believed interest rates should move higher. That's the most dissents since December 2014 when even the dissenters were divided about what should happen.
Proceeding with caution is the right approach, according to Barron's.
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By the Numbers
Notes: S&P 500, Gold, DJ-UBS Commodity Index returns exclude reinvested dividends (gold does not pay a dividend) and the three-, five-, and 10-year returns are annualized ... more important disclosure mentions found here. (We urge you to read the entire disclosure statement.)
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