I m sure you ve read or listened to lots of other opinions, too. This has helped me understand the differences between the many potentially attractive stocks in this sector and to rule out some equities entirely. The idea is to give each stock and company you study a positive, negative or neutral score in each of these three areas and then combine the scores into one ranking. No stock is likely to come out with a perfect average. But you re not looking for perfection, just for the best in the sector.
Good times tend to cover up problems.
With customers pounding at the door, it doesn t seem to matter much. Advertisement Tough stock markets and tough economies test companies and their stocks. Suddenly, those inefficiencies matter. Minor holes in a company s product line turn into chasms that swallow all revenue growth. The stocks you want to buy when the economy turns around are those of companies that did well, or at least held their own, when the economy was lousy.