How to go about stock research?

Hey all,

I'm looking to dedicate time to thoroughly research and evaluate a stock this month. Preferably large cap; I'm just a bit lost on how to go about it... there's a lot out there but it's a bit overwhelming. Ideally, I would go through macro backgrounds, historical trends, 10-Ks, their financial statements and build a DCF as well as use other multiples for valuation. Is there a comprehensive stock research guide out there? Anyone could redirect me to some sites? There's a lot out there and its a bit overwhelming. Thank you in advance!

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Comments (6)

  • Intern in IB-M&A
Jul 6, 2020 - 3:21pm

Your school library's probably has some databases that have equity research reports too and industry coverages. I would focus on being able to analyze 10-ks and financial ratios (margins, leverage, etc), peer group analysis/multiples, industry analysis, forecasting out 3 financial statements and having all of them be pulled through with each other, construct a best/base/worst case assumptions page, and really focus on why the company you're looking at has growth potential and their comp edge.

  • Prospect in IB - Gen
Jul 6, 2020 - 4:13pm

how should I go about choosing my sector / firm stock for analysis? Looking to do a deep dive into one stock for the next few weeks. Thanks for the helpful pointers!

  • Intern in IB-M&A
Jul 6, 2020 - 4:43pm

What sectors interest you? If this is your first go at stock analysis, maybe pick a company that you really like (let's say you love lululemon) clothes. Choose them. For a first time doing analyses I would do a company you maybe understand better it will make your understanding of the business model, industry research, and competition analysis easier. Once you get better at analyses then you can move on to more sectors you don't know too much about. Hope this helps!

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