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Trader Q&A: What Fundamentals to Look at When Picking a Stock

Schwab’s Trading Services Team discusses which basic fundamental data is most important when deciding to invest in a stock.

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[John] So some of the basic fundamentals are to look at the earnings, the cash flow that a company generates, the revenue that they're generating. Now, are they generating more revenue year over year, quarter over quarter? Are their earnings going up year over year, quarter over quarter? If you don't want to do all that homework yourself, we've got all that information on the website under our research staff.

 If you don't want to do that work, we've got third party research available to you. You can also use our Schwab equity ratings where we assess the fundamentals and we assess the momentum of the stock and we come up with a simple rating of A, B, C, D, or F and A's or B's are stocks that you want to consider investing in that we expect to outperform over the next 12 to 18 months. D's and F's are those that we expect to underperform.


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