There are literally thousands of stocks available for purchase on the stock market. So how do you go about finding the right ones to buy? Often it is helpful to use a stock screen, a set of criteria that you can quickly compare stocks against to see if they meet your requirements. You should first sit down and come up with a list of your investing objectives; once you have that you should be able to come up with a suitable screen . Your selection criteria for the initial screening should be a few quantifiable measures that you think are the most important for your investing.
Here are a few criteria worth considering(and of course there are many others):
Earnings growth
Recent earnings surprises
Price/earnings ratio
Dividends
Marketcap or size
IndustryRelative strength
10 Questions to Ask Before You Buy a Stock!
What Does the Company Do?
Is the Company Profitable?
What Is the Companys Earnings History and Outlook?
How Richly Is the Companys Stock Valued?
Who Are the Companys Competitors?
Who Runs the Company?
How Clean Is the Companys Balance Sheet?
Have You Read the Companys 10-K and 10-Q Annual Reports?
Are There Any Red Flags That Call Into Question the Companys Integrity?
Is the Companys Competitive Position Sustainable?