Here’s a quick and easy checklist to ask yourself before buying a value stock.
1. Does the stock have consistenly increasing EPS (earnings per share), Sales and Cash Flows?
2. Does it have sustainable competitive advantage?
3. Does the company have future growth drivers in place?
4. Does the company have conservative debt?
5. Does the company have a high & consistent ROE (return on equity) and ROA (return on assets)?
6. Does the company have low CAPEX (capital expenditure) for maintenance of current operations?
7. Is the management of the company holding or buying the stock?
8. Is the stock price selling at a discount?
9. Is the price consolidating or on an uptrend?