With the rise of retail investors and zero-commission trading platforms like Webull, more individuals are looking to invest in stocks on their own. However, with over 5,000 stocks listed on major exchanges, it can be overwhelming trying to pick ones that are right for your portfolio. Here are some tips for finding good stocks to invest in on Webull.
Leverage Webull’s stock screener
One of the best tools Webull offers is its stock screener, which allows you to filter stocks by criteria like market cap, sector, valuation ratios, volatility, and more. You can screen for stocks with high growth potential, undervalued stocks, dividend payers, and other factors that may fit your investing strategy. The screener lets you easily scan thousands of stocks to identify promising candidates.
Look at most active stocks and top gainers
Webull’s platform shows lists of the most actively traded stocks that day as well as the top gainers. Frequently traded stocks often have high liquidity, making it easier to get in and out of positions. Top gainers may show stocks breaking out into uptrends or experiencing positive news. But make sure to do additional research before investing.
Check analyst ratings
Webull provides analyst ratings from institutions like Morningstar and S&P Global Ratings on stock pages. Favorable ratings from analysts may flag stocks with strong fundamentals and growth outlooks. Just keep in mind that analyst opinions can change over time and may not always accurately capture a stock’s potential.
Review financial news and SEC filings
Webull aggregates relevant financial news and SEC filings like earnings reports and insider transactions for each stock. Stay up-to-date on news that may impact the stock’s price and check filings for data like revenue growth, profitability, management changes, and more. These can help assess the quality of the business.
Compare valuations
Fundamental ratios like P/E, P/S, P/B can be used to gauge a stock’s valuation and compare it to industry peers. Stocks trading at attractive valuations relative to growth prospects may have more upside. You can screen for these metrics and see how a stock stacks up.
Utilizing Webull’s built-in tools like the stock screener, news feed, and fundamentals data can help retail investors find stocks that match their investing style and risk tolerance. Do thorough research beyond just the numbers before deciding which stocks to invest in. Patience and diversification are also key to building long-term wealth in the stock market.