Are these promising investments

Are These Promising
Investments?
By
www.ProfitableInvestigtips.com

https://profitableinvestingtips.com/profitable-
investing-tips/are-these-promising-
investments
In the business news there are always
reports of investments that have done well.
But are these promising investments for the
future?

investments
This thought came to mind when we read an
article in The Motley Fool about two stocks
that “crushed the market” recently.

investments
Are These Promising Investments for
You?
Here is what The Motley Fool has to say in
their article.
A good stock really distinguishes itself when
its share price rises above that of a
prominent market index. In some way, it
hovers above the rest of the vast pack of
equities.

investments
With the depth and breadth of the U.S.
market, there are always a few standouts.
For this week, let's take a look at two good
ones, and see what made them rise
confidently above the average.

investments
The two stocks they look at are Splunk and
Square. Splunk is a data analytics solutions
provider. Square is described as a “next-
generation” financial services provider.

investments
Splunk’s route to long term success is by
providing companies with the tools to
analyze and make use of great amounts of
increasingly complex data.

investments
Square’s niche is the tablet sales registers
that are increasingly common. They provide
both the hardware and software.

investments
Both stocks went up based on strong
quarterly earnings. Now our question is, are
these promising investments for you either
in the short or long term.

investments
Finding and Evaluating Promising Long
Term Investments
A company that is making money is doing
something right. What you need to do is
determine if the business plan that resulted
in a strong quarter will continue to pay off.

investments
When investing in stocks, this is all about
determining intrinsic stock value. The
successful investor Warren Buffett has
famously said that he tends to avoid tech
stocks because the success of their
products, services, and business plans are
so hard to predict.

investments
That having been said, we like both of the
stocks mentioned by The Fool because they
follow the logic of selling picks and shovels
when everyone else is digging for gold. Both
of these companies provide tools that make
businesses more efficient and potentially
more profitable.

investments
Their place in the world of business is not
one of inventing the tech but of effectively
utilizing it to benefit their customers.
Because, in each case their earnings are up,
they seem to be doing something right.

investments
Your job in deciding if these are promising
investments for the future hinges on whether
the type of services they provide will be
needed into the distant future and whether
they can continue to be top (and profitable)
providers of services in that niche.

investments
Comparing Promising Investments with
Their Competitors
In the case of Square you will need to compare
it with others who provide services in their
niche which include Shopify, VISA, American
Express, Apple, and Amazon.com. In the case
of Splunk the competitor are ServiceNow,
Salesforce, VMWare, Palo Alto Networks, and
Workday.

investments
Looking at Stock Prices Over the Years
of Investments That Appear Promising
Then you need to look at how recent profits,
and stock price, compare to how they have
done over the years.

investments
Splunk popped up $30 a share to $147 on the
strength of recent earnings but it was selling at
$140 a share just three months ago before its
price fell. This company has been listed for 7
years, started at $35 a share, and has never
fallen below $31 a share. It does not pay
dividends and has no P/E ratio listed. This is to
a degree a “story” stock that requires your faith
in its success if you invest long term or your
willingness to buy and sell for short term profits.

investments
Square has been listed for 4 years and
started at $12 a share. It currently sells for
$68 a share but is down from $94 a year
ago. Like Splunk, it does not pay dividends
and does not have a listed P/E ratio. Again,
this is an investment that may be profitable
for short term profits but requires faith in
their ability to compete in their niche if you
want to invest long term.

investments
Stocks and other investments that are
reported in the business news are always
worth checking out as promising
investments but you need to do your
fundamental analysis to determine the best
stocks to invest in.

investments
For more insights and useful information
about investments and investing, visit
www.ProfitableInvestingTips.com.

Are these promising investments

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Are these promising investments