Our Stock market analysts and investors may look at a variety of factors to indicate a stock’s probable future direction, up or down in price. Here’s a rundown on some of the variables in our stock analysis. A stock’s market capitalization, or market cap, is the total value of all the outstanding shares of the stock.

Value investing is more focused on avoiding risk than growth investing is. Growth investors seek out companies with exceptionally high growth potential, hoping to realize maximum appreciation in share price. They are usually less concerned with dividend income and are more willing to risk investing in relatively young companies. Technology & pharmaceutical stocks, because of their high growth potential, are often favored by growth investors. Growth investors are effectively value investors sometimes, in that we seek out companies whose stock may be currently undervalued due to reasons that may be as simple as the fact that the company is relatively new and has not yet caught the attention of many investment analysts or fund managers. The goal for us is to grab up shares at a low price of a company that is well-positioned to enjoy a sizeable and continued surge in growth. There are a number of possible ways to approach identifying such companies, one of which is looking at companies in hot sectors. We can identify a new, well-managed and well-funded company that is part of a hot sector can often reap substantial rewards Match Investments to Your Objectives When it comes to choosing growth or value, it’s hard to say definitively which one is better. It may come down to your objectives: Are you looking for potential income

Many high-growth stocks, especially those involved in emerging technologies, don’t pay dividends. Some may not even have positive earnings but rather plow resources into continued growth. Well-established companies, many of which have a long history of dividends and dividend growth, may be priced for value. What’s your time horizon and risk tolerance? Shares of high-growth companies often experience higher volatility and may be more susceptible to short-term market dynamics. Having a longer investment horizon might help you weather any periodic downturns and give your investment time to realize potential growth. Also, remember that investing doesn’t have to be an either-or, vanilla-or-chocolate, chunky-or-creamy, heads-or-tails decision. Choosing a mix of growth stocks and value stocks can help you build a diversified portfolio. The risk of loss in trading stocks, can be substantial. Stock markets are volatile and can decline significantly in response to adverse issuer, political, regulatory, market, or economic developments. Asset allocation and diversification do not eliminate the risk of experiencing investment losses.