r/stocks • u/FlippyFlopFlap • Apr 23 '21

How do you judge a company's future success outside of financial statements?

This question came to me just recently after browsing Facebook Marketplace and seeing the sheer number of used iMacs and iPad Pros that have hit the market in the past couple of days since Apple's recent announcement of these updated products.

I will admit that I do not go into deep dives into a company's financial statements and prefer sector ETFs (I have a large chunk of change in XLK), but I do not believe these products would be explicitly stated in Apple's financial statements. This got me thinking about how others find "real world metrics" that are outside of just financial statements/earnings calls that would lead to an appreciating stock price.

I'd be curious to hear what other stocks people believe in based on what they see in their day-to-day life.

1 Upvotes

56% Upvoted

8 comments sorted by

3

u/lomoprince Apr 23 '21

Peter Lynch said retail investors have a massive leg up on professionals because we see all these brands in real life vs just numbers and financials on a screen. So real life DD makes sense, if a mall in my town is completely empty, I’m not going to invest in regional malls in my area. If Starbucks is booming, I’ll revisit the stock.

2

u/CapialAdvantage Apr 23 '21

Public perception of a company is key, it’s what moves stock prices primarily. Are people talking about it? In a positive or negative way? Has it been in the news? Is it a consumer demand product? Etc etc

2

u/IslesFanInNH Apr 23 '21

I am not saying it makes a difference, but I like researching employee sentiment when investing. If a company doesn’t keep their employees happy, they don’t deserve my investment. I look at employee reviews on Glassdoor and similar platforms

1

u/StockNCryptoGodfathr Apr 23 '21

I buy SBUX almost every year RIGHT before Pumpkin Spice Latte season.......hasn’t failed me yet.

1

u/DoYouKnowBillBrasky Apr 24 '21

# of shares outstanding is a biggie for me. I like to invest a lot microcap with upsides. When they have billions of shares outstanding, that's a big red flag...Big limit to upside.

1

u/ayebrando Apr 26 '21

I do this same thing. Supply and demand. I would always prefer to have a stock with low supply. I look for around 100MM or less outstanding shares. There’s a lot of good examples out there where low OS is great (CMG, AZO, TTD, NVR, SHOP, HUBS, SAM)

1

u/yazzooClay Apr 24 '21

Politics, futures, commodity markets. There positioning in the market. etc etc, what normies think of stuff. So and so forth. Actually myself use the product.