Stock Basics
Stock Strategies
Trading Demo
Research Options
Online Resources
Glossary
Contact Author
Research Options
There are many sources of information regarding stock prices. The most common form of information is the stock quote. Generally, a stock quote will list the price of the stock when the market opened, the current price, the closing price, and the change in price. Sometimes, quotes will include 52 week highs and lows. The best quotes will also include a P/E ratio. The price earnings ratio helps you to determine how healthy the company really is. P/E ratios are relative. First, the price of a stock is influenced by analysts' opinions of the company. Second, you must take the average P/E ratio for the industry into account when you are researching this number. A low P/E ratio could signify a company in which the stock analysts have low confidence. A very high relative P/E ratio could be a sign of undue optimism on the part of the analysts. Always find out if there is a real reason behind a high P/E ratio.
Sample Stock Quote
| INTL BUSINESS MACH CORP (IBM) October 25, 2000 5:01 PM EDT | |||
|---|---|---|---|
| Closing price, NYSE | 87 9/16 | Change | -3 7/8 (-4.24%) |
| Bid | 88 | Ask | 88 1/16 |
| Bid Size | 100 | Ask Size | 200 |
| Volume | 14,076,500 | Tick | - |
| Day range | 86 15/16 - 90 15/16 | Open | 90 1/2 |
| EPS | 4.09 | P/E | 21.41 |
| 52wk Hi | 134 15/16 (9/1/2000) | 52wk Lo | 89 (10/21/1999) |
Value Line
Value Line produces a concise report that provides all the information you are likely to need for researching a company. Generally, you can find these reports at your local library free of charge. If you want them delivered to you or on the Internet, you will have to pay for a subscription. If you are a professional stock trader, this is a must buy. But, if you trade only once in a while, you may want to go to the library.
The Value Line Report provides several numbers that give you the general health of the company at a glance. The most important numbers are the P/E ratio and the relative P/E ratio. The relative P/E ratio tells you how this company's P/E ratio relates to the other P/E ratios in the same industry. For instance, if a company has a relative P/E ratio of 2.03, this means that this company's P/E ratio is 2.03 times the average P/E ratio for that particular industry. This report also includes financial information for the last 18 years and an analysis report. If you want further information about the Value Line report, you can download a more detailed description.
View sample Value Line Report| Download Adobe Reader |  |