3 US Stocks Every Indian Should Be On The Lookout For| North Loop Official Blog
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06 Oct 2020

3 US Stocks Every Indian Should Be On The Lookout For

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Choosing the top US stocks 2020 to invest in sounds easy, but actually, it requires a very in-depth analysis. As investors, the best stocks primarily include those that yield our expected returns. But how do we distinguish between potential stocks and how to determine if they will give the desired returns or not? Let us read further to understand how to identify the best US stocks you should consider investing in by focussing on three crucial factors -

Undervalued stocks –

An overvalued stock can never be the best choice because it has a strong possibility to shed its price in future, resulting in negative returns. That can include stocks of companies whose fundamentals are weak or of those with super-strong fundamentals like the blue-chip stocks. The principal point to remember is that the top US value stocks to purchase Apple stock in are always the undervalued stocks that have the potential to earn 12-15% per annum returns in the next five years.

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Stocks with strong business fundamentals –

The top US stocks 2020 usually represent businesses with strong fundamentals. But this is a broad aspect as several parameters get considered when screening a stock based on its business fundamentals. Company size, profitability, growth rate, all of them play a huge factor in determining whether the fundamentals are powerful or not and if they can get considered as top US value stocks. For example, the growth rate is every investor’s favourite. If a company’s growth attribute is visible, no matter how big or small the company size is, investors consider these stocks as one of their best bet. It plays such a crucial role that even highly profitable companies tend to underperform as compared to growth stocks.

Intrinsic Value –

One of the most important factors has to be the buy price of a stock. A company’s size, profitability, and future growth rate should all justify its buy price. But how? That is where the intrinsic value of stock comes into the picture. By finding the basic net worth of the company (adding up all of the company’s assets and subtracting away its liabilities), the real value of a company can get determined. It has gotten observed that stocks with relatively stable intrinsic value even during stock price fluctuations get favoured by long-term investors. That is because they provide downside protection during times of market turmoil. For advanced analysis of the top gainers US stocks to invest in, a detailed look at the company’s earnings per share (EPS) multiplied with its annual growth rate can also be taken. Future cash flows can also get projected subtracting the long term outstanding debts to understand the real value of the stock.

“Best stock” is a very subjective term because it can mean different things to different people. The expected yields and long-term goals vary for every investor and therefore, narrowing it down to a specific set of rules is not a very wise decision. However, the factors listed above can help immensely in choosing the best stocks to diversify an investment portfolio. Even though no amount of calculation will ever allow you to know for sure if a particular stock is the best one, these three components can prove to be beneficial tools to help determine whether it is a good value buy or not. A thorough fundamental analysis of the business in addition to an adequate study of the historical market data of stocks can help predict the stocks future price movements.

If you wish to invest in top gainers US stocks online, you can do so on North Loop. We are a digital banking and investment platform with access to the world’s biggest stock market and allow you to invest from the comfort of your home with only a few clicks. Our user-friendly interface ensures that your investment experience is seamless with quick access to all necessary data and information. The steps you can follow to invest in US stocks via North Loop are as follows –

Download the App from App store/Play store
Sign up on North Loop
Open an account on the App
Deposit money into your account
Start investing!
(You can even opt to invest in fractional shares)

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This publication is provided for general information purposes only and is not intended to cover every aspect of the topics with which it deals. It is not intended be advice. You must obtain professional advice before taking, or refraining from, any action on the basis of the content in this publication. The information in this publication does not constitute legal, tax, investment or other professional advice from North Loop or its affiliates. We make no representations, warranties or guarantees, whether express or implied, that the content in the publication is accurate, complete or up to date. All opinions expressed do not reflect the views of North Loop nor are endorsed by North Loop.