How to look for a new stock

Beginner Difficulty · 5min to complete

Learn how to use Stockflare to find new ideas. How to find great businesses you’ve never heard of.

In this tutorial

In this tutorial we explain how to use Stockflare to pick a new stock, to filter through the thousands of potential investment opportunities and find stocks that may be great investments for you.

Table of contents

We are going to cover 3 things

  • Firstly, how do you use Stockflare to look for a new stock
  • Secondly, once you’ve spotted one that looks interesting, how do you dig into the details
  • And finally, what next, when you think you’ve found a gem.

Part 1. Let’s look for a stock

At Stockflare, our Find Ideas page is one big database with every major company in the world. Here we can see there are over 8,000 companies in the US.

Stars by every stock

So how do we get the stock list down to a more manageable size.

Here there are 6 options for sorting the results and 6 options for filter. I’m a pretty conservative investor, so, I’m going keep the list sorted by size.

Sorting

Next, let’s use the filters

  • I’m going to choose 5 star stocks
  • I can change the country, though, note the US is the default
  • Let’s pick an investing style, say positive momentum
  • Then, how about large companies only
  • And finally, let’s add a valuation metric, say stocks trading below book value.

Filtering down

Wow, we are down to 4 companies from over 8,000 companies.

Now that’s just one flavour of filtering the enormous choice you have. So it’ll probably take you a few times to work out which filters suit your style of investing.

Part 2. Looking at the details

Now that we have zoomed in on a short list of stocks. how do we dig into the details. Well, just click through.

Remember, you can always dig deeper at Stockflare. In particular, one of the key things we encourage everyone to do is to make sure they understand what the business does.

After our filtering of the 8,000 companies in the US, we’ve got down to 3 stocks here in the Financial space. Let’s look at Citigroup.

SunTrust example

First, let’s check the stars:

  • Looks like its price is a decent discount to its competitors
  • Growth is just a little above average
  • Wall Street likes it and thinks it’s got room to rise
  • And its both profitable and paying dividends.

So, what about the rest of the analysis. Well, personally I always like to check what the business does and what the recent results look like.

Scrolling down, let’s see the full description. We click this box here. And we can see a little more on Citigroup. What sort of business it is in. And where it operates.

SunTrust Description

Then on recent results, we can see how sales and profits have been moving.

SunTrust Results

Part 3. What next?

Now that I’ve found a stock that I’m interested in, what should I do next.

Well there are at least three pretty obvious things you could do.

  • Firstly, add it to our watchlist
  • Secondly check out the competitors, in case one of of them is even more exciting
  • And finally, forward the details to a friend you trust and ask them what they think.

So let’s quickly do these 3 tasks.

Here we are back at Citigroup. Let scroll up to the top. Here’s the Watch button. And bingo its added.

Watch button

Next, let’s check out those competitors. Here down near the bottom of the page. A few big names are there. And even a few foreign companies that are listed in the US.

Competitors list

Finally, let’s scroll back up and share the idea with a friend.

Share

So there we go. Finding a new stock idea, picking stocks is pretty easy using the filters at Find Ideas.

Conclusions

Thanks for reading this tutorial and please let us know how you get on. Picking stocks is easy with Stockflare. So drop us a message and tell us what you find.

Presentation materials