Do you find it daunting to invest in a new market? Is it important for you to read an elaborate analysis of the security you choose to invest in, before you make the final call? Do you find it difficult to gather all the necessary information and readings for the stocks and ETFs you want to invest in? Do you feel unsure about your investment before you choose to make the final “BUY” (or “SELL”)?
At Stockal, we have constantly strived to make investing in USA stocks from India easy and seamless. We launched Stockal for investors in India in late 2019 and for our investors in MENA in mid-2020. Since then, thousands of investors have transacted hundreds of millions of dollars on the platform. But one of the areas that remained unsolved in these during our initial days has been investment research and expert recommendations.
The US markets remain “unfamiliar” no more! Stockal has a great solution for you!
With our collaboration with TipRanks, premium investors can now view real-time expert ratings, analyst recommendations, and strong buy or sell moves for any US stock listed on our platform!
There are more than 2,400 businesses listed on the New York Stock Exchange, each of which has ten markets and issues its own stock. Also, listings can be found on the NASDAQ, where 3,800 companies sell stock. You might be curious about how investors choose which US stocks to buy now and how to identify fresh investment opportunities. A stock screener is frequently the response to these two queries.
Finding the Right Stocks and Sectors
Take a look at the following factors to make an informed decision on which US stocks to buy now:
- Pick the Right Sectors
When the market is rising, you want to be investing in USA stocks in the sectors that are doing the best since some industries outperform others. In other words, you aim to invest in industries that are outpacing the market. According to a benchmark like the S&P 500 index, the technology sector can be up 10%, but the broader market may be up by only up 3%. These finest sectors can be identified by screening the sector with the best earnings performance and taking into consideration their projected future earnings.
You can identify the hottest sectors by looking at multiple time frames, which are not only performing well currently but have also demonstrated strength in the past. Depending on their investing time horizon, investors will select different time ranges. We then pick the industry that has the best performance. Investors can diversify their portfolios by picking a couple of the top industries.
- Pick the Right Stocks
After seeing an upward trend in a part of the economy that is dominating the market, we must decide which stocks to purchase inside that sector. Simply purchasing a basket of companies that represents the entire industry could produce respectable results. However, we can do better by hand-picking the top stocks in that industry. The procedure is the same as when choosing the sector. i.e., the performance and projections of earnings.
The best method to pick the right stock is by doing a fundamental analysis of the company. Investors can use tools such as screeners to filter out stocks based on market cap, revenue growth, cash flow growth and debt. In addition to that, they can also listen to top management at investor conference calls. Companies also provide presentations to investors and analysts to better understand company performance. Third-party expert opinion can also be sought for in the news, blogs and articles. The method for locating specific stocks is similar to that used for performing a sector analysis. To ensure that the stock is doing well over the long term, find the stocks within each sector that have experienced the biggest price increase utilizing a variety of timeframes.
We want the stocks that have outperformed the market across two or three timeframes. Look over the graphs of the best-performing stocks and draw trend lines to clearly show the price trend. In order to discover prospective price gains while taking the danger of losses into account, profit objectives depending on chart patterns must be defined.
- Special Considerations
It is significant to remember that there are additional aspects to take into account while deciding on which US stocks to buy now, which include:
- Liquidity: The number of shares exchanged that enables immediate purchase or sale of a stock is referred to as liquidity. There are many buyers and sellers if there is liquidity. If a speedy liquidation is necessary, buying stocks with limited volume makes it difficult to sell at a reasonable price. Invest in equities with trading volumes greater than a few hundred thousand shares daily unless you are an experienced investor.
- Price: Many investors choose low-priced stocks over those with high stock prices. Investing in USA stocks that are at least $5 in price, ideally more, is recommended. Not that there aren’t “excellent” cheap stocks or “poor” costly ones, but you shouldn’t avoid a stock because it is pricey or purchase a stock simply because it is inexpensive relative to other stocks.
- EFTs: Trading ETFs has advanced significantly over time. You might be able to discover an ETF that can provide you with outcomes that are pretty close provided you do not intend to hold numerous individual equities. If buying certain ETFs is preferable, there is no issue with doing so as long as they reasonably reflect the individual equities that would have been chosen.
- Exiting and Rotating: Although there is no assurance you will achieve exceptional results, this technique does present the possibility of doing so. To confirm that the sectors and equities still favour the market, some position monitoring is necessary. Additionally, avoid overtrading, which can lead to high commissions; this is why we employ different timeframes.
This is time to rotate into the industries that are performing well if your sectors or stocks start to lose popularity over several timeframes. This procedure is known as sector rotation. When to exit holdings should be determined by your market analysis. It’s time to get out of the trade and hunt for fresh trade opportunities when significant trend lines well within equities being held or sectors being studied are violated.
What makes Stockal the go-to app for investing in the US stock markets
Stockal, a stock market investing app, has partnered with TipRanks for offering this research product. TipRanks aggregates stock ratings given by analysts in the last 3 months to determine the overall consensus, ranging from Strong Sell to Strong Buy. Their average 12-month target price is displayed along with the potential upside/downside from the current market value, demonstrated by a graph that extrapolates the high, low and median stock price estimates for the next 12 months.
Analysts are rated on the basis of their success rate at making recommendations, average returns from all recommendations and the statistical significance of their results. Find the analyst’s name, firm, and rank next to the rating details. Users can also discover the rationale behind any recommendation next to each analyst’s ratings, by clicking on “Read article”.
- TipRanks offers investors a plethora of powerful tools that provide extensive research for the stock you are interested in. It helps you ideate better, research deeper, and manage your portfolio more efficiently. This comprehensive tool aggregates ratings and analyst recommendations made on stocks and helps track both the performance of analysts and experts who publish recommendations.
The platform will also track returns made by top hedge funds and corporate insiders. This data can be used to draw insights on investor holdings, and will also offer simplified graphics to understand the potential of the stock you’re researching.
- The long-term mathematical methodology used by the Zacks Recommendations and Zacks Ranks, as well as the advantages of earnings estimate revisions, are fully understood by the analysts who make up the Zacks Equity Research division.
For the 1,050 equities they track, our experts have the authority to deviate from the quantitative recommendations. These suggestions are also made available to Zacks Premium members on the website and are referred to as Zacks Recommendations in the in-depth Analyst research reports.
- MorningStar: A fund’s past performance is evaluated using the Morningstar RatingTM, also known as the star rating, which ranges from one to five stars. Each month’s end, star ratings are determined. On Morningstar.com, you may perform a fund search to view its latest star rating for no cost. Based on an improved Morningstar Risk-Adjusted Return metric, the Morningstar Rating methodology assigns ratings to funds belonging to the same Morningstar Category.
A fund must have a track record spanning over three years in order to earn a Morningstar Rating. The funds that have the greatest investor assets and interest are given the Analyst Rating by Morningstar fund analysts. Five major criteria—People, Process, Parent, Price, and Performance—are used by analysts to assess funds. Each analyst evaluation is based on in-person discussions with the funds management team, examination of confidential Morningstar data, and review of fund documents.
A comprehensive scorecard is created for analysts, allowing investors to view the potential gains from each analyst’s history. After viewing the analyst’s name, firm, and sector, along with the analyst’s success rate and average returns, the user can make a well-informed decision about investing in USA stocks of their choosing.
Stockal is the best stock market investing app and we maintain that by valuing your money, and want you to have access to all the possible tools that can help you make the most of your earnings. Our collaboration with TipRanks is a first of its kind for our Indian users, as we strive to ensure our investors have access to quality decision-making.
So what are you waiting for? Become a GOLD MEMBER with Stockal if you haven’t already, and start investing in US stocks from India using TipRanks!