If you are remotely interested in the stock market, you have probably done a lot of research online.
So, when you see an ad for the Motley Fool, don't ignore it.
Especially if it is for a triple buy.
What is a triple buy?
Before we jump into what a triple buy is and why it's so important…
…let's discuss stock market research, in general.
From there, we can narrow down why the Motley Fool triple buy is such a significant notification.
Today, there are more options than ever for stock market research and in-depth company analysis.
This plethora of research is both a blessing and a curse.
On the one hand, having an abundance of research should make it is easier to perform:
- Strong due diligence;
- Compare analysts against each other; and
- Form your own opinion on a particular stock.
On the other hand, too much information can lead to analysis paralysis.
“Analysis paralysis” is when you are bombarded with so much information that your brain just freezes up, and you can't process any more information.
If we are being honest, this is probably a more likely scenario if we open up 10 different analyst reports on the same company.
Accordingly, we just want to know what to do.
What to Look For
So, what should you even look for when you are trying to invest in a stock?
You can say that you're doing research all day long.
However, if you don't have a standard that you are comparing your data to…
…then you're not really going to go anywhere.
You may even be setting yourself up for failure wandering aimlessly through a forest of spreadsheets.
When you are valuing a stock or trying to form an opinion on the performance of a particular company, there are a few metrics that are always helpful.
These metrics can give you a quick snapshot of the company's financials.
Let's check them out.
Earnings Per Share (EPS)
Both growth and value investors maintain a laser focus on a company's earnings per share.
Every share of stock issued by a company is essentially a small piece of the overall ownership.
Each share has its own job.
When a company reports its net income for the quarter or for the year, the overall net income is divided divided among each share.
If there is a net profit for the reporting period, earnings per share is represented by a positive dollar amount.
For example, ABC company reports $1,000 in profits, and it has 10,000 shares outstanding.
In this scenario, the EPS would be $0.10/share.
If the company had a $1,000 loss, then it would report an EPS of -$0.10/share.
Growth companies are often comfortable operating at a loss while growing because they are constantly reinvesting all of their income in the business.
Established companies that are continually taking a loss may be a more risky investment.
Price/Earnings (P/E) Ratio
Value investors are much more interested in PE ratios than growth investors are most of the time because they use it as a quick measuring tool to determine if a company is “over-valued” or “undervalued.”
For example, if the stock price is $200 and the EPS is $1, the P/E would be 200 times earnings.
P/E ratios are often in the hundreds, and sometimes thousands, which would make the company look incredibly overvalued.
However, this is not necessarily the case since the company is still growing.
P/E ratios are often better indicators for a value company.
Warren Buffett is a famous example of an investor who always looks for undervalued stocks.
Trading stocks require both buyers and sellers.
If you think you have a great deal on a stock, check the trading volume first.
Trading volume is a representation of how many different investors are actively buying and selling that particular company.
If there are not many buyers and sellers in the marketplace, you might not get the price you want to enter a market order.
Getting the right price on entry or when you sell it on exit is vital to maintaining your profits.
Now that we've discussed a few of the big metrics investors use when evaluating stocks…
…let's dive into how to find the right research with the Motley Fool.
The Motley Fool
The Motley Fool is one of the oldest and most reputable newsletters when it comes to stock research, portfolio diversity, and market analysis.
Brothers Tom and David Gardner founded The Motley Fool In the late 1990s.
What initially was a small, focused newsletter dedicated to providing Wall Street resources to Main Street investors has evolved into an international Endeavor with offices worldwide.
In the beginning, the Motley Fool premise was simple.
There was a void in the marketplace for in-depth and respectable research for retail investors.
The internet was still very young.
Any other than Wall Street Traders and investors did not have access to strong research-backed by reputable analysts.
The Motley Fool has built his reputation over the decades, and their flagship service is called Stock Advisor.
The service is straightforward and offers a TON of value.
Stock advisor costs between $99 and $199 per year, depending on if you can find a promotion or not (you usually can).
The primary benefit of the subscription service, are the two stock picks included every month.
Each brother, Tom and David, spend each month sifting through dozens of companies to uncover companies that they believe can be very successful.
They each have their own separate team.
They use different valuation models and combine fundamental research with technical analysis to ultimately arrive at their stock pick of the month.
Once they arrive at their decisions, they submit their stock pick to the monthly newsletter.
Next, members receive access to the list of starter stocks.
At the start of the stock list is one of Motley Fool subscribers' most valuable assets because it is an excellent introduction to the stock market for new investors, and it bolsters diversification in any portfolio.
Putting a diverse portfolio together is difficult, but the Starter Stock list has great companies in a variety of different industries, so it is intrinsically diverse and provides great exposure to new companies.
Finally, subscribers receive top picks from other analysts at the Motley Fool, along with the data and research behind their choice.
Triple Buy Alert
Now that we understand what the Motley Fool is, and what they do…
…we are going to describe what is so special about a triple buy recommendation.
There are thousands of publicly-traded companies on the stock market.
However, sometimes, Tom Gardner recommends a particular stock multiple times throughout a series of newsletters.
This is something very important to pay attention to because there are so many companies to choose from…
…yet he comes back to the same stock three times and recommends it to the members.
Tom is usually more value-focused and risk-averse, whereas David focuses on finding a grand slam investment.
This is important to keep in mind as well because Tom's risk-averse strategy would not take the same stock three different times if it didn't have an X-Factor or something very special about the company and its leadership and financial performance.
If you see a triple buy stock recommendation, it's at least worth checking out in performing some due diligence because they don't joke around with their stock recommendations.
You might find a great opportunity for a new investment.
Regardless if you are an avid subscriber of the Motley Fool, or somebody who is just now hearing about it, they have something to offer to every level of investor, whether you're a first-day novice or a veteran day trader.
*** SPECIAL ALERT -- Friday, December 4, 2020 -- TWO of this Year's Motley Fool Stock Picks Have Already DOUBLED and ONE Has Already TRIPLED in just 7 Months! ****
We have been tracking ALL of the Motley Fool stock picks since January 2016. That's 4+ years, 55 months and 110 stock picks. As of Friday, July 24th, two of their twelve stocks picks from 2020 have already doubled (SHOP and ZM) and another one has tripled (TSLA)--all in just the first 7 months of 2020. In addition, 6 of their 2019, 8 of their 2018, 9 of their 2016 and 11 of their 2016 picks have also doubled. Best of all, over these 55 months, the average stock pick is up 128%. That beats the SP500 by an average of 93%. And that's even accounting for all of this COVID mess that has wreaked havoc on most stocks. BUT, the Fool has done so well because they have quickly identified stocks this year that will perform well in the post-COVID world. THAT is how the Fool consistently does so well--they adapt and constantly pick stocks before everyone else realizes the opportunities.
- Pinterest (PINS) — Oct 1, 2020 pick is up 42%
- Fiverr Intl (FVRR) — Sept 3, 2020 pick is up 50%
- Crowdstrike (CRWD) — June 4th pick is already up 24%
- ServiceNow (NOW) — May 7 pick is already up 28%
- Shopify (SHOP) – April 2, 2020 pick and it is already up 185%
- Zoom Video (ZM) – March 19, 2020 pick and it is already up 141%
- DexCom (DXCM) picked Feb 20, 2020 right before the market crashed and it is still up 39%
- Tesla (TSLA) picked January 2, 2020 before the crash and it is up 414%
- HubSpot (HUBS) picked December 5, 2019 and it is up 96%
- Netflix (NFLX) picked November 21, 2019 and it is up 68%
- Trade Desk (TTD) picked November 11, 2019 and up 152%
- Zoom Video originally picked Oct 3 and it is up 289%
- SolarEdge (SEDG) picked September 19, 2019 and it is up 147%
- Wix (WIX) picked May 2019 and it is up 113%
** If you had been a subscriber for the 12 months, then you would have these profits as of September 5, 2020
Now, no one can guarantee that their next picks will be as strong, but our 4.5 years of experience has been super profitable. They also claim that since inception, their average pick is up 504% and now we believe them. Many analysts are saying that we have passed the bottom of this COVID crisis and "certain" stocks will recover quickly and be the new leaders. So make sure you have the right stocks in your portfolio.
Normally the Fool service is priced at $199 per year but they are currently offering it for just $99/year if you click this link
FYI -- ALERT as of November 29, 2020 -- Did you see the news? TESLA hit a new high this week and is now at $585. TESLA was the Motley Fool's January 2, 2020 pick back when it was at $86 so that stock is now up 580% in less than a year. Also TTD is now up 353% since they recommended it in November 2019 so it is up 353% in exactly 12 months. Also, 19 out of 22 of this year's picks are up with an average return of 77% compared to the market's 17% return. In addition to TSLA's 580% return this year, 4 other picks have more than doubled (their February pick NVTA is up 125%, March pick ZM is up 281%, April picks of SHOP and ZM again are up 198% and 213%; May pick NOW is up 38%; their Sept 3 pick FVRR is already up 76% and October 1, 2020 pick of PINS is already up 56%.
Over the last 5 years their average stock pick hass almost tripled (up 198%)! This time period covers the 2016 election, the Trump administration, COVID, and now the Motley Fool is getting ready to release their stock picks that they expect to do well during the Biden administration. Don't miss out on the Motley Fool's next stock pick. Here is the schedule for their next TRADE ALERTS:
- December 3, 2020 - Tom's New Stock Recommendation
- December 10, 2020 - Tom's 5 New Best Stocks to Buy Now List
- December 10, 2020 - David's New 5 Best Stocks to Buys Now List
- December 17, 2020 - David's New Stock Recommendation