Individual Equities
COURSE
Individual Equities
How to find and analyze individual equities using fundamental analysis.
Individual equities, because they don't provide instant diversification, typically have more upside potential than ETFs. Of course, that increased potential comes with increased risk as well. This course will teach you how to analyze revenue and earnings per share, ways to assess management performance and how Wall Street evaluates and affects stock prices. We finish with a review of relative strength and sector (or "top down") analysis. We show you how to analyze the top-line revenue number and the bottom line earnings number to understand how well management is navigating the company through various environments. We'll explore how Return on equity (ROE) let's you determine just how effective management is at turning your equity into profits. Alternatively, we'll understand how PEG ratios, and other ratios, can tell you if Wall Street sees growth prospects in the future for the stocks you are interested in. Relative strength and sector analysis helps us put our choices in context. Wall Street tends to flock to the stocks that are currently doing well at the expense of those that aren't. Knowing this, you can see which stocks have relative strength advantages over other stocks and put your money where the momentum is. By looking for the sectors that are driving today's bullish price movement in the market, you can work your way down to the stocks that will most likely be driving tomorrow's bullish price movement in the market.
In this course, you will learn:
- How to find those sectors that are outperforming through a top-down analysis
- The most effective way to analyze company revenues and earnings
- How to gauge the success and skill of a company’s management team and whether they can continue to provide stellar results
- Why it is important to understand investor sentiment on Wall Street and where you can find that information
- How to conduct a thorough relative strength analysis to find the top-performing stocks in the market
Once you have completed this course and implemented the concepts you have learned, you will:
- Have the bragging rights that come from knowing more about effective fundamental analysis than 99% of retail investors
- Have the confidence to make intelligent decisions about which stocks to buy and which stocks to sell
More Information
Difficulty Level: | Intermediate |
Modules: | 5 |
Lessons: | 20 |
Course Syllabus
Individual Equities
Module 1 | Analyzing Performance with Revenue and Earnings Per Share (EPS) | |
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The two most important numbers on any income statement are the top-line revenue number and the bottom line earnings number. By analyzing those two numbers, you can learn almost everything you need to know about what market environment the company is operating in looks like and how well management is navigating the company through that environment. | ||
Lesson 1 | Reading: Earnings and Revenue | |
Lesson 2 | Video: Revenue and Earnings per Share (7:06) | |
Lesson 3 | Quiz: Revenue and EPS | |
Lesson 4 | Assignment: Analyze the Performance of Selected Stocks | |
Module 2 | Assess Management with Return on Equity (ROE) | |
When you buy stock, you are buying ownership shares in a company. As one of the owners of that company, you want to know what management is doing with the company's equity. Return on equity (ROE) let's you determine just how effective management is at turning your equity into profits. | ||
Lesson 1 | Reading: Understanding and Using ROE | |
Lesson 2 | Video: Value Ratios ROE and P/FCF (8:29) | |
Lesson 3 | Quiz: ROE and Value Ratios | |
Lesson 4 | Assignment: Assess Management Performance of Various Companies | |
Module 3 | Take the Pulse of Wall Street with PEG and other Ratios | |
Having a well-run company is only half of the equation when it comes to stock valuations. The other half depends on how Wall Street feels about the company and its industry. The PEG ratio, and other ratios, can tell you if Wall Street sees growth prospects in the future for the stocks you are interested in. | ||
Lesson 1 | Reading: Taking the Pulse of Wall Street with PEG and Other Ratios | |
Lesson 2 | Video: PEG and Other Valuation Ratios (6:17) | |
Lesson 3 | Quiz: Understanding PEG and Other Ratios | |
Lesson 4 | Assignment: Conduct An Analysis on Four Stocks | |
Module 4 | Size up the Competition with Relative Strength | |
Just as evolution tends to favor the strong at the expense of the weak, Wall Street tends to flock to the stocks that are currently doing well at the expense of those that aren't. Knowing this, you can see which stocks have relative strength advantages over other stocks and put your money where the momentum is. | ||
Lesson 1 | Reading: Relative Strength | |
Lesson 2 | Video: Top Down Analysis – Part One (12:02) | |
Lesson 3 | Quiz: Relative Strength | |
Lesson 4 | Assignment: Use Relative Strength To Analyze Stocks and Sectors | |
Module 5 | Find Leading Sectors with a Top-Down Analysis | |
Sometimes the easiest way to identify sectors and stocks that are going to do well in the future is to indentify those sectors and stocks that are doing well right now. By looking for the sectors that are driving today's bullish price movement in the market, you can work your way down to the stocks that will most likely be driving tomorrow's bullish price movement in the market. | ||
Lesson 1 | Reading: Find the Leading Sectors with Top-Down Analysis | |
Lesson 2 | Video: Top Down Analysis – Part Two (8:36) | |
Lesson 3 | Quiz: Top-Down Analysis | |
Lesson 4 | Assignment: Use Top-Down Analysis to Predict Economic Trends |