STOCK RESEARCH
The three stocks you will be researching: AAPL; BX; XOM
The assignment is to research these three stocks and put the information in the table below in order to compare and contrast different ratios and research variables. The ratios and variables you will be looking at are listed below in the Definition of Terms.
In order to complete this assignment you will need to go to https://finance.yahoo.com/lookup
Follow these steps:
1. Go to https://finance.yahoo.com/lookup
2. One at a time enter the stock symbols in the quote box
Use the information listed in the summary section, holders and the statistics section to fill in the table below. (summary, holders and statistics appear on a bar running left to right just below the price quote and above the chart).
3. After filling in the table, answer the questions at the end.
| Stock Ticker | Industry | Highest Price in 2013 | Last Closing Price | 52 Week High | 52 week Low | Beta | Institutional Ownership | Dividend Yield | P/E Ratio | |
| XOM | ||||||||||
| BX | ||||||||||
| APPL |
Which stock had the greatest percentage loss in share price; comparing 2013
and the last closing price? _________________
Which stock seems to be the most volatile? _______________
Which stock has the highest dividend yield? __________________
Based on the P/E ratio, which stock has the highest potential for being a worthwhile investment? ____________
Which stock has the highest ownership by institutions? ___________________
Earnings Per Share
Earnings per share (EPS) is the portion of a company’s profit allocated to each outstanding share of common stock. Earnings per share serves as an indicator of a company’s profitability.
The Price-To-Earnings ratio P/E Ratio
In essence, the price-earnings ratio indicates the dollar amount an investor can expect to invest in a company in order to receive one dollar of that company’s earnings.
In general, a high P/E suggests that investors are expecting higher earnings growth in the future compared to companies with a lower P/E. A low P/E can indicate either that a company may currently be undervalued or that the company is doing exceptionally well relative to its past trends. When a company has no earnings or is posting losses, in both cases P/E will be expressed as “N/A.” Though it is possible to calculate a negative P/E, this is not the common convention. BETA
Beta is a measure of the volatility, or systematic risk, of a security or a portfolio in comparison to the market as a whole. Beta is used in the capital asset pricing model (CAPM), which calculates the expected return of an asset based on its beta and expected market returns. Beta is also known as the beta coefficient.
A beta of 1 indicates that the security’s price moves with the market. A beta of less than 1 means that the security is theoretically less volatile than the market. A beta of greater than 1 indicates that the security’s price is theoretically more volatile than the market. For example, if a stock’s beta is 1.2, it’s theoretically 20% more volatile than the market. Conversely, if an ETF’s beta is 0.65, it is theoretically 35% less volatile than the market.
DIVIDEND
A sum of money paid regularly (typically quarterly) by a company to its shareholders out of its profits (or reserves).
Institutional Ownership
The amount of a company’s available stock owned by mutual or pension funds, insurance companies, investment firms, private foundations, endowments or other large entities that manage funds on the behalf of others.
52-Week Range
The 52-week range reflects the lowest and highest price at which a stock has traded in the previous 52 weeks.
