Assignment
In this assignment, you are the analyst who is going to recommend to your client to
1) either purchase or not to purchase the stock,
2) supporting your recommendation with SOLID reasons.
The format that is used in the trade follows like this:
1) Introduce the company;
2) show its past and current performance;
3) what are the analyst recommending and why (group the analyst by for and against the stock);
4) what is your recommendation (based upon your write-up and experience);
5) SUPPORT your reasons for your recommendation.
The first three sections will be lengthy and should be thorough. The last two sections will need to FIRM and SUPPORTIVE (You need to be concise and the message needs to be clear to the client). I am looking for a well thought thru and written paper and not just a paper. You may want to search for a recommendation by an analyst as a sample write-up.
Remember that this is the real thing! and not just an exercise. If you will learn these steps you willreap multiple benefits as you begin to invest for your future. Keep in mind that CASH and Consistency in performance are a MUST to successful selection and recommendation. No cash or decreasing cash being generated (added value) is an indication of performance (as viewed by their customers) and decisions by management (executive management) and together this impacts leverage (ability to use other people's monies to add value to your company.)
If you have any questions, please let me know.
Purpose of Assignment
The purpose of this assignment is to allow students the opportunity to research a Fortune 500 company stock using the popular online research tool, Yahoo Finance. The tool allows the student to review analyst reports and other key financial information necessary to evaluate the stock value and make an educated decision on whether to invest.
Assignment Steps
Select a Fortune 500 company from one of the following industries:
• Pharmaceutical
• Energy
• Retail
• Automotive
• Computer Hardware
• Manufacturing
• Mining
Access Yahoo Finance and enter the company name.
Review the financial information and statistics provided for the stock you selected and answer the following:
• What is the ticker symbol of the company you chose?
• What is the Current Stock Price?
• What is the Market Cap for the stock you chose?
• What is the Price to Earnings Ratio?
• What is the Dividend and Yield?
• What is the Enterprise Value?
• What is the Beta?
• Was there a Stock Split, and if so, when?
• What was the closing stock price for the last 5 days?
• What was the 52 Week High for this stock?
• What is the Book Value per Share?
• What type of rating are analysts recommending (i.e. buy, hold, etc.)?
• What is the target price analysts are predicting for this stock?
• What is the analyst's average revenue estimate for next year?
• What are some of the significant news items and press releases made by the company over the last year?
Explain in 700 words why you would or would not recommend investing in this stock.
• Describe the relationship between the value of the stock and the price to earnings ratio.
• What information does the Market Capitalization (Market Cap) and Beta provide to the investor?
Format your assignment according to the following formatting requirements:
1. The answer should be typed, double spaced, using Times New Roman font (size 12), with one-inch margins on all sides.
2. The response also includes a cover page containing the title of the assignment, the student's name, the course title, and the date. The cover page is not included in the required page length.
3. Also include a reference page. The Citations and references should follow APA format. The reference page is not included in the required page length.