April 8, 2016  |   

You are thinking about making the decision to invest, and naturally when you consider investing in a company you wonder, is it the right time?

There is a way to help you decide if what you want to invest in is the best decision or not.

History Homework

The best way to figure this out is to do a little homework on the companies history. Take a close look at the earnings release to gain a better understanding of the market. It is important to understand how the previous earnings can influence the future gains or losses.

A Few Tips

  • Make sure you are prepared to buy the stock you feel is of good value and that makes sense for you and your target price.
  • Make a note of when they are going to announce the next earnings report.
  • Keep an eye on the earnings calendar.

If you do your research and homework then you can begin to become a bit more strategic when it comes time to make your decision to invest.

You can also look into Earnings Surprise Predictions or ESP. Earnings Surprise occurs when a company’s reported profits are above or below expectations. These expectations are based on numerous things such as, previous reports, current market conditions and the earnings of the company.

Earning surprise can have a huge impact on stock price.

Want to see more?

Check out ZACKS earning surprise predictions here: http://www.zacks.com/earnings/earnings-surprise-predictions/

So if you are considering buying stock in a company, then you want to make sure to look at the past earnings reports to figure out how they have been and are doing overall. This will help you figure out how they will do. Make sure to look at the income statement, balance sheet and cash flow.

If you see green on all sides and you feel that the price is fair, then we believe that is a good stock for you to invest in.