Stock Selection Based on Valuation, Growth, Profitability and Payout Ratio Analysis
DOI:
https://doi.org/10.54691/bcpbm.v38i.3797Keywords:
Stock Stability, P/E Ratio, Gross Margin, Earnings Per Share, Dividend Yield.Abstract
Stock selection is one of the most popular topics among both inexperienced and sophisticated investors. However, it is always difficult to make a decision from various kinds of stocks with limited purchasing power. Therefore, this study focuses on stock selection among seven particular stocks. The selection was be based on comparisons of indices of valuation, profitability, growth, and payout. Domino’s Pizza Inc stood out from the first part of the comparison in light of its stability and constant growth. MV Oil Trust stood out from the second part of the comparison on account of its high dividend yield. Both Domino’s Pizza Inc’s and MV Oil Trust’s stocks will be the recommendations for investors. The significance of this study is to help investors understand the indices and process of stock comparison under a complicated modern stock market and to help investors with their investment decisions. These results shed light on guiding further exploration for stock selection.
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