A do it yourself (DIY) investor is typically looking for control of their investment portfolio. Their account is not in the millions of dollars, probably not half a million either. They have determined hiring an investing firm or financial advisor for the stock market is not cost effective. The DIY stock market approach can be done without large professional fees. There are multiple free, open source research tools and low cost services such as TipRanks.
Netflix, Inc. (NASDAQ: NFLX) is a popular company and popular stock. Chances are you have watched many Netflix originals and know the slang, "Netflix and Chill." A DIY stock investor could be drawn into buying stock in a company like this because they use the service and read many popular finance articles about the company.
The following is an example of using a TipRanks review service for researching an investment in Netflix, Inc.
Upgrade to the premium features that TipRanks has and you can narrow the projected price range based on just the top rated analyst reviews. This will assist in stock market decisions.
The initial search results show a projected price range based on the opinions of 33 analysts across the globe. Here we see the current price per share (PPS) is $217.26. The stock price estimations range from a low of $93 price per share (PPS) to a high of $270 PPS. Twenty-one analysts rated the stock a buy, eleven rated it a hold, and one rated it a sell.
Not all experts are created equal. Some are labeled "bloggers" like yours truly, of which I am also a DIY stock investor. Bloggers can get it right or outperform the "analysts" too, but TipRanks also compiles the articles of more conventional big banks and brokers. Everyone receives a rank and average return percentage. During my peak 2017 TipRanks performance, I had 5-stars and was rated greater than 96% of the other financial bloggers.
Along the way it will be necessary to create a TipRanks profile. You can then subscribe to bloggers and analysts. This feature will alert you when the experts issue a new stock pick. You can also subscribe to a stock ticker listed under various markets: NYSE, NASDAQ, or OTC. Subscribe to Netflix and you will be alerted when someone writes another review.
Upgrade to allow your profile to subscribe to more experts and more stock tickers.
There are plenty of stocks to sift through and many experts to screen. TipRanks has multiple newsletters that can aid in the process. Join a TipRanks newsletter and use discount code: Travis. TipRanks Newsleters.
Not every expert likes having their performance tracked by TipRanks, but it provides a uniform accountability. There are some limitations to the algorithm. For example, most portfolio managers know that a stock pick and the thesis could prove wrong. In such an event, they may choose to set a stop loss limit. In other words, they will schedule to sell their stock shares if the price drops a certain low percentage and thus protect against a major loss. In contrast, a TipRanks rating holds each stock picker accountable for at least a full year of the company's performance.
The above chart shows that I had made a buy-pick for Netflix on June 20, 2016. At that time the PPS was $93.80. TipRanks' review of my performance shows that the pick was a success for a 62.1% increase on investment over the course of a year. However, todays PPS is closer to $186.82 for nearly 100% return over a +2 year timeline.
Disclosure: I am/we are long JASN, NEPT and no positions in NFLX, GE, or AAPL with no plans to initiate any positions within the next 72 hours.
Buy-side analysis of stocks:
1. Gun Control Myths Resurface But Stocks Bounce Back
2. Making Babies? This Stock Counts On It.
3. Is The $136 Billion Debt Of General Electric A Deterrent?
4. Interview: Neptune Wellness Solutions CEO Jim Hamilton
Articles are written by Travis Brown at Seeking Alpha. Information covers stocks in the NASDAQ stock market and NYSE stock market.