Investing in Stocks
Personal Financial Plan
Goals
1. Determine how to value a stock based on information about the economy and the firm.
2. Determine a method to use for investing in stocks.
Analysis
1. Select a stock in which you are considering investing.
2. Search the web and review various key economic indicators such as GDP (gross domestic product),
M2 (money suppy), consumer price index (CPI), producers price index (PPI), and employment statistics.
Keep in mind the product and/or service provided by the company you have selected to analyze. In the
space provided below, record your analysis of the various economic indicators and reports and
their impact on your stock.
Comments
3. Go to a financial website (e.g., Google Finance). Enter the symbol of the company you wish to analyze in
the Search box. Click on Search. This will bring up quote data for your company. Answer the
following questions, finding the data in the tab indicated:
		Enter Stock Name and Ticker
Snapshot
a. Is the price of your stock currently close to its
52-week high or 52-week low?
b. Does this stock pay a dividend and, if so, how much?
Charting
c. Under the stock chart, click on 5yr. What has been the long-term price trend of
your company's stock?
News
d. Under "News," do you see any significant news events that may favourably
or unfavourably affect your stock?
Earnings
e. What is the current estimate for the mean EPS?
How does this compare to the EPS from a year ago?
f. Under reported quarters, evaluate how well the company has been able to meet
analyst expectations.
g. What is the trend in the estimate of the EPS?
h. Is this stock a recommended buy or sell? How many brokers have evaluated
this stock?
i. What is the P/E for this stock? How does it compare to the industry?
Summary
j. Based on your analysis of the above, answer the following questions:
1. Would this stock be considered a(n) (enter an X to signify your choice):
Growth stock
Income stock
Growth/income stock
4. For which of the medium- or long-term goals that you established in Chapter 1 would this
stock be a suitable investment, if any?
Medium-Term Goals
		Suitable (Yes or No)	Rationale for Selection
Long-Term Goals
		Suitable (Yes or No)	Rationale for Selection