Pick a stock you like and why?
New investor asking if anyone would care to share some info on any stocks they like / how to answer this interview question?
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Pick some stocks of companies where you already understand the business model so that you can talk about it without a high learning curve.
What are you majoring in? If it's some kind of chem/biology --> then pick something in healthcare.
Here are companies where anyone could explain their business model, competition and other qualitative factors. Some of these are performing poorly right now and I would never pick them as my 'stock pick' -- they are just there as examples.
Whole Foods, Colgate, UPS, Fedex, General Mills, ITT Technical Institute, Starbucks
On the quant side --> P/E ratio, PEG ratio, EV/EBITDA ratio, Sales Growth, EPS Growth
This is a common question you should definitely be prepared to answer. As squawkbox said, you should definitely pick a company you're familiar with. One of the big mistakes people make is focusing just on the qualitative factors (e.g. great company, great service, great products, great mgmt team) and not talking about the valuation factors. The question asks about a stock you'd recommend, not a great company.
Here a sample strong and weak answer to that question Tell me a stock you like and why you like it - http://bit.ly/hUwJO
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Thanks for the replies.
Could you recommend any resources on learning to invest? (books / websites) things you have used personally to help me understand quantitative factors and will aid me in finding a good investment?
I'm sure you can find some threads on this site with some other good resources and others can chime in on some resources they've found helpful, but here are some pieces on the Gotta Mentor site you can take a look at:
Relative Valuation Basics - http://bit.ly/1OpgBQ DCF Example - Valuing a Cow http://bit.ly/cYKrU Introduction to Valuation - http://bit.ly/13Uuut
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Just say Anacott Steel. If they ask why, lean in and whisper "Blue horseshoe loves Anacott Steel." Then sit back and wink. Instant offer.
the "pick a stock" question... (Originally Posted: 01/25/2014)
so i'm trying to prep for an S&T interview coming up and i know that a common question is being asked to pitch a stock/investment idea. i've read conflicting things on this site and others, however, as to how technical you should get.
some have suggested a mainly qualitative analysis with a quick mention of some ratio and then just tying the pitch back to a general macro trend. others suggest going in guns blazing with EV multiples, projected upside/downside, the price next year, time frame of the investment, etc.
i guess a lot depends on the interviewer, but whats the best way to go about it?
Really depends on the industry your stock / investment belongs too. You have to make clear WHY you would invest in this particular stock. If that's about the industry potential etc. , then you should mention that. If that's because of strong ratios / undervalued stock price / relative undervaluation etc. then you should elaborate on those points.
I'm going to agree with luke on this one, I've pitched several different stocks at my interviews do far. Some have great technicals and others have a great tie in to the macro economy. You've gotta pick whatever makes your stock look best, hit em hard and fast, and allude on. If they're a good interviewer they're going to probe your choice with some tough questions...that's when you start to reveal all the nitty gritty things you know.
Interview - Pick a few stocks (Originally Posted: 01/04/2010)
If Im applying for a summer analyst position and Im actually asked to pick a few stocks for 2010, how should I go about it?
Not necessarily need the answer, but rather the way I answer this ques.
Like e.g. I don't kw how I can look for info where I'm able to compare PE ratio to the industry.
Do you kw any example of a well-built answer to such a ques! thanks
Bunch of ways to do this, none really right or wrong. You could look at last years worst performers and look for stocks which were temporarily depressed. You could look forward and look at certain revival industries (Nuclear, Solar) or stock which you think might break out (APPL). Whatever. You could look for stocks with decent PE ratios. I mean whatever you pick you just have to be thoughtful and convincing.
In reality it is more about your reasoning than your pick itself. I always picked a rather obscure stock hoping the interviewer DIDN'T have knowledge of it and couldn't grill me on it. I would shy away from Apple for that reason (the ticker is AAPL by the way, not APPL). I actually had a company I researched on my resume, and one time had the interviewer bring in the 10K of the company and ask me questions from it... not fun.
Pick a company that you can support with fundamental analysis (why you like the business, industry trends, etc) as well as one that possibly is trading at lower levels than its peers (EV/EBITDA, PE) but make sure you have an idea as to why it is trading below its peers.
Ha, thanks for the correction. I am exhausted sitting at school for no reason trying to stay up. What do you think about the up coming event that Apple is having on the 26th?I am thinking it has something to do with their tablet. Stock should have it priced in already, but I think a tablet would be a great product for them. Depending on pricing I could see it being a strong seller. Lot of talk about AT&T losing Iphone exclusivity also.
If you want to compare PE ratios you can look at PE ratios of comparable companies (you then have to justify why they are comparable) in the same industry. Also I'm sure if you do a bit of Googling you can find industry-wide PE ratios--I know I found a site that did this two years ago, unfortunately I can't find the e-mail in which I sent it to my friends who were also applying for SA stints. But this information is out there if you look hard enough.
While I think you'd be able to tell a great story and have great copmparables for something like an AAPL or MSFT, I would agree with Billy Ray and caution picking a name that is constantly in the headlines. It's a much better idea to have a lesser known name that you can explain relatively well and back up with sound fundamentals than to have the interviewer come back at you with tons of follow-up questions which you may not be able to adequately answer.
Stock picks (Originally Posted: 01/26/2008)
It seems like the "stock pick" question is quite popular with first-round IBD/ST interviews. Wanted to get some opinion on a couple stocks you might recommend in the current market, and why.
Pick up this weekend's edition of Barrons. It always has many well-reasoned picks and ideas. Don't use one of the more prominently featured ones though. Most people who are plugged into the market know the stocks that got big articles in Barrons that week.
register a 2 week free trial at morningstar.com
they have very detailed articles on practically every stock
Stock picks. (Originally Posted: 01/06/2008)
Some of my buddies in their interviews have been asked, "pitch me 3 stocks to buy", and after their picks, the interviewer went onto ask, "pitch me another 3".
What are some stocks you recommend and why? I personally like Constellation Energy (CEG). Given the market's volatility and hightened sense of uncertainty as to its direction, a utility company like CEG, is a relatively safe choice, and consistent dividend.
http://www.fool.com/investing/general/2007/12/31/the-best-stocks-for-20…
take a look at that, motley fool's stock picks for 2008. They give some good ideas and reasoning. I just wouldn't use just them, pick one from a few different sources in case your interviewers happened to have read the article... you want to seem original.
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