Forget the hype, headlines, or hope. These 9 financial ratios are what real investors actually use to pick winners, but... P/E? ROE? EPS? ? - What are they, or better yet, WHO are they? ? - How high is “too high”? - Is a low number always good, or just a trap? - Do all industries follow the same rules… or is that another myth? Buffett. Greenblatt. Graham. Lynch. They didn’t rely on vibes — they trusted fundamentals After years of relying on charts, I built a 9-point fundamentals checklist to filter stocks faster and smarter. Now I’m sharing it with real-life examples and key insights to help you spot what really makes a stock worth owning: Easy enough for new investors diving into fundamentals Sharp enough to level up seasoned pros Real enough to avoid hype …but the truth is: these numbers did flag companies like Amazon, Apple, and Nvidia before the market gave them credit. ----------------------------------------------------- ✅ Quick Reference Table Scan the table, then dive into the stories… https://www.tradingview.com/x/mdBbXYpr/ First Pro Tip: Bookmark this. You’ll check these before every stock pick. ----------------------------------------------------- ? 1. P/E Ratio | Price-to-Earnings What it tells you: How much you pay for each dollar of a company’s profit. Short Example: A P/E of 20 means you pay $20 for $1 of profit. High P/E? Expect big growth or risk overpaying. Strong: Between 15 and 25 Caution: Above 30 (unless fast growth) Industry Averages: - Tech: 25–40 - Utilities: 10–15 - Consumer Staples: 15–20 - Energy: 10–20 - Healthcare: 20–30 Story: In early 2023, NVIDIA’s P/E ratio hovered around 25, near the low end for tech stocks. Investors who saw this as a steal amid the AI boom were rewarded—NVIDIA’s stock made 4x by the end of 2024 as AI chip demand soared. Contrast that with Tesla in Q1 2025, when its P/E spiked above 40 with slowing sales and Tesla’s stock dropped 50% in weeks. Pro tip: A low P/E is not always good. If growth is weak or falling, it's often a trap. Example: A utility company with a P/E of 30 is probably overpriced. A tech stock with 35 might still be fair — if growth justifies it. ----------------------------------------------------- ? 2. PEG Ratio | Price-to-Earnings-to-Growth What it tells you: If a high P/E is worth it based on future profit growth. Whether the earnings growth justifies the price. Short Example: A PEG below 1 means you’re getting growth at a fair price. High PEG? You’re overpaying. Strong: Below 1 Caution: Above 2 Industry Averages: - Software: below 1.5 is solid - Consumer Goods: Below 2 is more realistic - Tech: Below 1 - Consumer Staples: Below 1.5 - Healthcare: Below 1.2 - Financials: Below 1.5 - Energy: Below 1.3 Story: In mid-2022, Salesforce’s PEG was 0.8 (P/E 35, forward EPS growth 45%) as cloud demand surged. Investors who spotted this steal saw the stock climb 130% by the end of 2024. Meanwhile, Peloton in 2023 had a P/E of 20 but near-zero growth (PEG above 3). Its stock cratered -50% as fitness trends faded. Story: NVIDIA’s PEG hit 0.9 in Q3 2023 (P/E 30, growth 35%) during AI hype, a steal for tech (average PEG below 1.2). PEG filters hype. A stock can look expensive until you factor in growth. ----------------------------------------------------- ? 3. P/B Ratio | Price-to-Book What it tells you: How much you pay compared to what the company owns (like buildings or cash). Short Example: A P/B below 1.5 means you’re paying close to the company’s asset value. High P/B? Expect strong profits or risk. Strong: Below 1.5 Caution: Below 1 + poor earnings = value trap Industry Averages: - Banks: Below 1.5 - Insurance: Below 1.3 - REITs: Use NAV (aim below 1.2) - Tech: Often ignored - Energy: Below 2 Story: In 2024, JPMorgan Chase’s P/B was 1.4, solid for banks (average below 1.5). Investors who bought enjoyed 100% gains. n 2023, Bed Bath & Beyond’s P/B fell below 1 with collapsing earnings. It looked cheap but filed for bankruptcy that year. Tip: Only use this in asset-heavy sectors like banking or real estate. ----------------------------------------------------- ⚙️ 4. ROE | Return on Equity What it tells you: How well a company turns investor money into profits. Short Example: An ROE above 15% means the company makes good money from your investment. Low ROE? Weak returns. Strong: Above 15% Caution: Below 10% unless in slow-growth industries Industry Averages: - Tech: 20–30% - Consumer Staples: 15–25% - Utilities: 8–12% - Financials: 10–15% - Healthcare: 15–20% Story: Coca-Cola (KO) has kept ROE above 35% for years, a sign of brand power and pricing strength. Eli Lilly’s (LLY) ROE stayed above 25% from 2022–2024, a healthcare leader (average 15–20%). Its weight-loss drug Mounjaro drove consistent profits, lifting the stock 150%+ in two years. Checking ROE trends helped investors spot this winner. Tip: If ROE is high but D/E is also high, be careful, it might just be leverage. ----------------------------------------------------- ? 5. Net Margin | Profitability What it tells you: How much profit a company keeps from its sales or what % of revenue ends up as pure profit. Short Example: A 10% margin means $10 profit per $100 in sales. Low margin? Tough business or high costs. Strong: Above 10-15%+ Caution: Below 5% Industry Averages: - Software: 20–30% - Retail: 2–5% - Manufacturing: 8–12% - Consumer Staples: 10–15% - Energy: 5–10% - Healthcare: 8–15% Story: Walmart’s (WMT) 2% net margin looks tiny — but it’s expected in retail. A software firm with 5%? That’s a warning — high costs or weak pricing. In 2023, Zoom’s (ZM) net margin fell to 5% (down from 25% in 2021), well below software’s 20–30% average. Pricing pressure and competition crushed its stock quite a lot. Meanwhile, Apple’s 25% margin in 2024 (tech average 20%) remained a cash cow. Tip: Margins show whether the company owns its pricing or competes on price. ----------------------------------------------------- ? 6. D/E Ratio | Debt-to-Equity What it tells you: How much debt a company uses compared to investor money. Short Example: A D/E below 1 means more investor cash than debt. High D/E? Risky if profits dip. Strong: Below 1 Caution: Above 2 (except REITs or utilities) Industry Averages: - Tech: 0–0.5 - Industrials: 0.5–1.5 - REITs: 1.5–2.5 (manageable due to structure) - Utilities: 1–2 - Energy: 0.5–1.5 Story: In 2024, Tesla’s D/E dropped below 0.3 (tech average 0–0.5) as it paid down debt, signaling strength despite sales dips - a massive rally afterward. Tip: Rising debt + falling profits = a storm coming. Always check both. ----------------------------------------------------- ? 7. Free Cash Flow (FCF) What it tells you: Cash left after paying for operations and growth investments. Short Example: Apple’s $100 billion cash pile in 2024 funded stock buybacks, boosting shares. Low cash? Trouble looms. Strong: Positive and growing Caution: Negative for multiple years Sector notes: - Tech: Lots of cash (think billions) - Industrials: Up and down, check trends - REITs: Look at FFO (cash from properties), aim high - Energy: Has cash, but swings with oil prices - Healthcare: Steady cash, not too high Story: Netflix had negative FCF while scaling content. Once costs stabilized, FCF turned positive and stock re-rated sharply. Pro tip: Profits don’t mean much without real cash. FCF is often more honest. Cash is king: Companies need cash to pay bills, reduce debt, or fund growth. If FCF is falling, they might be burning through cash reserves or borrowing, which isn’t sustainable. Potential issues : This mismatch could signal problems like poor cash collection, heavy spending, or even accounting tricks to inflate profits. ----------------------------------------------------- ? 8. EPS Growth | Earnings Power What it tells you: How fast a company’s profits per share are growing. Short Example: EPS up 10% yearly means more profit per share, lifting stock prices. Flat EPS? No growth, no gains. Strong: Above 10% Caution: Below 5%, flat/negative for 3+ years Industry Averages: - Tech: 15–30% - Staples: 5–10% - REITs: 3–6% (via FFO growth) - Healthcare: 10–15% - Financials: 5–10% - Energy: 5–15% (cyclical) Story: In Q1 2024, NVIDIA’s forward EPS growth of 30% (tech average 20%+) fueled a rally as AI chips dominated. Checking forward estimates helped investors avoid traps like Intel, with flat EPS and a drop. Pro tip: A stock with flat EPS and no dividend? There’s no reason to own it. ----------------------------------------------------- ? 9. Dividend Yield | Passive Income What it tells you: How much cash you get yearly from dividends per dollar invested. Short Example: A 3% yield means $3 per $100 invested. High yield? Check if it’s sustainable. Good: ~3–4% Red Flag: Above 6% with a payout ratio above 80-90% Industry Averages: - Utilities: 3–5% - REITs: 3–6% - Consumer Staples: 2–4% - Tech: 0–2% - Energy: 2–5% ----------------------------------------------------- ? Final Thought: How to Use All of This Top investors don’t use just one metric. They look at the whole picture: Good growth? Check PEG. Good profits? Confirm with ROE and margin. Safe balance sheet? Look at D/E and cash flow. Fair valuation? P/E + FCF Yield + P/B. Real power = Combining metrics. A company with P/E 15, PEG 0.8, ROE 20%, low debt, and positive FCF? That’s your winner. A stock with P/E 8, but no growth, high debt, and negative cash flow? That’s a trap. ----------------------------------------------------- Real-World Combos ?Winners: Tech Gem: P/E 20, PEG 0.8, ROE 25%, D/E 0.4, growing FCF, EPS 20%+ (e.g., NVIDIA 2023: AI-driven growth, stock soared). Energy Steal: P/E 15, P/B 1.5, FCF positive, Dividend Yield 3.5% (e.g., Chevron 2023: Cash flow king). ⚠️Traps: Value Trap: P/E 8, flat EPS, D/E 2.5, negative FCF (e.g., Peloton 2023). Overhyped Tech: P/E 50, PEG 3, Net Margin 5%, D/E 1.5 (e.g., Rivian 2024). ----------------------------------------------------- ? Share your own combos! What do you personally look for when picking a stock? If you spotted something off in the numbers, or have a valuable insight to add — please, drop it in the comments.? ? Let’s turn this into a thread that’s not just good but superb and genuinely helpful for everyone. ----------------------------------------------------- Final Thought “Buy great companies at fair prices, not fair companies at great prices.” – Warren Buffett This guide gives you the map. Charts, tell you when. These numbers tell you what, and why. And this post? It’s just the beginning! These 9 metrics are part one of a bigger series I’m building — where we’ll go even deeper, with more advanced ratios, smarter combos, and real case studies. If this guide helped you see financial numbers a little clearer, there’s a good chance it’ll help your investor friend too, especially if they’re just starting their journey...?Share it with them! I built this as much for myself as for anyone else who wants to get better.? If you made it this far — thank you! ? ...and super thankful if you hit "The Boost" on this post ? Cheers, Vaido
KEI INDUSTRIES Will face resistance around 3250 and after consolidating it will fall down sharply, so wait watch observe and learn
Published: 11/04/2025 Trade Summary Type: Sell Limit Entry: 9,655 Target: 8,725 Stop Loss: 10,020 Risk/Reward Ratio: ~2.5:1 Duration: Medium-Term Swing ? Technical View Copper has staged a sharp rebound after the March 2025 decline. Price has now returned to the 61.8% Fibonacci retracement level, a common turning point. There is also an unfilled gap at 9,669.6, which may act as a magnet for price and attract renewed selling interest. ? Fundamental Insight Institutional interest has been steadily declining since January 2025, indicating smart money is pulling back. Meanwhile, retail traders have increased their exposure—a typical contrarian indicator pointing toward potential further downside. ? Seasonal Trend From April 18 to June 27, copper prices have historically declined 64.8% of the time over the past 55 years, with an average drop of 3.60%. Disclosure: I am part of Trade Nation's Influencer program and receive a monthly fee for using their TradingView charts in my analysis.
?This week, the trend of gold has been ups and downs, and the price has been running in a high volatility range. At present, the market is fiercely competing around the cross candlestick pattern as the weekly line is about to close. If it finally closes at a low level, it may indicate that the gold price will continue the adjustment trend next week. Therefore, the strength and weakness of the closing of the weekly line this week will have an important impact on the direction of the market. ?Today's early trading market once again repeated the rhythm of yesterday. The gold price quickly rose after opening, reaching a high of around 3370, but stopped before this key resistance level, and then turned to fall, and broke through the low point of yesterday's European and American trading in one fell swoop, and rebounded slightly after reaching a low of 3287. ?From the market point of view, today's gold price fell below the key support point, suggesting that the short-term short-selling force is dominant. The current market focus has shifted to the 3260 line, which is an important low point in the previous downward trend and a short-term long-short watershed. If the gold price effectively falls below this support level, the market may enter a deeper round of adjustment, and the short-selling trend will be further confirmed and expanded. ?From the hourly chart, yesterday's low was at $3306, and today's rebound just stopped near this position, indicating that this position has turned into a short-term suppression position. Further upper resistance is 3315. If it breaks through, it is necessary to observe the suppression of 3328. ?In terms of lower support, the first focus is on 3287 touched today. If it is lost, the next key support is the previous low of 3260. Once this position is also broken, the bearish trend will continue to deepen, and the gold price may usher in a deep adjustment at the mid-term level.
BTC encountered significant resistance near $94,500 during this week's rally, and short-selling operations can be attempted when approaching this price level. BTCUSD sell@94000-94500 tp:93000-92500 I hope this strategy will be helpful to you. When you find yourself in a difficult situation and at a loss in trading, don't face it alone. Please get in touch with me. I'm always ready to fight side by side with you, avoid risks, and embark on a new journey towards stable profits.
Our trade is already activated... Let's take the buyers money now. a double top is confirmed.
Let’s break down this ALGOUSDT chart step-by-step — it’s a perfect example of trading patterns in action! ?♂️ Timeline (Aug 2024 - April 2025): ▸ Accumulation (Aug - Nov 2024): ALGO consolidates between $0.1050 and $0.1450, showing low volatility. This is a classic accumulation phase where buyers are quietly building positions. ▸ Breakout & Uptrend (Nov - Dec 2024): Boom! The price breaks above $0.1300 with strong momentum, climbing to $0.6100. ▸ Pause in a Symmetrical Triangle (Dec 2024 - Jan 2025): After the surge, ALGO takes a breather, forming a Descending Triangle (a neutral pattern). This signals market indecision — traders are waiting for the next big move. ▸ Breakout & Downtrend (Jan - Mar 2025): The price breaks below the triangle, dropping to $0.1480. This aligns with a "Descending Wedge" (reversal) from the cheat sheet , confirming the downtrend and reversal structure of the Wedge. ▸ Consolidation (Mar - Apr 2025): ALGO stabilizes between $0.1400 and $0.1600, setting the stage for the next move. ▸ Breakout & Uptrend (Apr - April 2025): Another breakout! The price surges above $0.1600, reaching $0.2200 again. It might reach higher levels like $0.2400 and $0.3000 in next weeks. https://www.tradingview.com/x/dpCVBSUE/ This chart shows how patterns like Descending Triangles, and Wedges can guide your trades. Spotting these using my Trading Patterns Cheat Sheet can help you time your entries and exits like a pro! ✉️ What’s your next move on ALGO? Are you buying the dip, waiting for confirmation, or taking profits? Drop your thoughts below — I’d love to hear your strategy!
the 'OTF - one time frame' Break of the monthly is still due. There was no chance for LONGS during the week for retail buyers, only late buyers. We've traded 2 days just under resistance, accumulating: - late LONGS - early SHORTS I'm willing to SHORT now on friday, once the OTF has been hit. Scalling in from cwHigh upwards Invalidation would be to keep pumping and then potentialy SFP on monday for downside. R:R is alright! I like to give myself a 3% invalidation range till SL.
we already in US30 profit.... you still enter the trade.
Bitcoin - follow the trend until it breaks best Long is after Sl hunt of a range