Picking and trading stocks require prior research and understanding of what makes certain stocks great investments. Behind every stock is a company that provide the value for the said stock. Picking good stocks usually involve knowing how to determine that qualitative factors that make them quite good choices and worth the investment. Here are some of those factors:

Strong Management

Behind every great and successful company is strong management. It is the management that gives the company what direction take and what goals it needs to achieve. In assessing the strength of the management, it is important to know who is heading it, their background and experience and the management philosophy they follow. This assessment will give you an idea about the company behind the stock.

Business Model

Another factor worth considering when analyzing a company is how it does its business. How the company makes its profit is an important way to determine how far as a business it will go as well as how promising its future will be. A good company is one that has a good business model and one that can be clearly understood.

Brand Name

Another factor to consider when analyzing companies behind the stocks is the brand or the name that they carry. Established brands usually belong to strong companies that has been known either got their great product or service. The brand name alone may help give a company an advantage in terms of opportunities based mainly on name recall and the positive marks associated with it.


An important factor to also consider when analyzing a company and its stock price potential may also include the type of industry it belongs to. Different industries may have different levels of competition vying for that top spot. Those companies who are considered at the top among their industry and competition are usually considered as strong ones with good stock prospects.