Stock picking ratios explained

There are five basic ratios that are often used to pick stocks for investment portfolios. These include price-earnings (P/E), earnings per share, debt-to-equity and return on equity (ROE).

Stock picking can seem confusing, but using fundamental analysis and ratios can help you find long-term investing opportunities. Ratio analysis isn’t only for individual stock pickers, as this type of study also benefits fund investors.

How to Pick Stocks Using Fundamental Analysis #1 Price to Earnings Ratio. The price to earnings ratio is a way to calculate how much you need to invest in order to… #2 Returns on Equity Ratio. The ROE ratio is another type of profitability ratio that measures how effective a company… #3 Price to …

Stock picking ratios explained