Stock Market Project Part One

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1 Introduction to Business - Sec 01 Stock Market Project Part One Deadline: Noon, Fri- Feb 22 Upload to: The related D2L drop box Value: 50 points Save with this file name: Overview Your Last Name BBY Data Table e.g. Widdel BBY Data Table Your goal for the end of this course-long project is to make as a positive return on investment for the money invested in stocks chosen at a later time this semester. This week, you ll learn about the stock market and be exposed to the important numbers and ratios that should be considered when choosing a stock for investment. For this week s assignment you ll be identifying some important numbers that will help you understand whether or not purchasing shares of Best Buy stock would constitute a good potential investment. Over time, you ll learn what these numbers represent, but this week you ll simply begin the process by sifting through a wealth of financial information about Best Buy stock at Yahoo Finance. Then you ll use the information to complete a blank stock data table. Directions Step 1: From the class website, download a copy of the blank Stock Data Table. Right click on the link. Save the file to your computer s hard drive (or a location of your choosing.) Open the file in word processing. You ll be filling in the details later. Step 2: Go to 1

Widdel BBY Data Table Your goal for the end of this course-long project is to make as a positive return on investment for the money invested in stocks chosen at a later time this semester.

2 (The following screen capture shows the home for Yahoo Finance.) Step 3: In the Get Quotes search box, key in Best Buy. Notice that a drop-down box appears, showing all world stock exchanges that list Best Buy stock. (Screen Cap 2) You need to select the stock that is listed on the New York Stock Exchange (NYSE). Also note that the abbreviation for Best Buy is BBY. This is called a ticker symbol. If the window doesn t advance automatically, click on Get Quotes After keying in Best Buy and clicking on Get Quotes the drop down menu appears and shows all the stock exchanges that list a company named Best Buy. You need to select Best Buy Co, Inc. listed on the New York Stock Exchange (a.k.a. NYSE) Note the ticker symbol for Best Buy (BBY). In the future, you can use that as the company s identifier instead of keying in the entire company name. 2

Also note that the abbreviation for Best Buy is BBY. This is called a ticker symbol.

3 Step 4: The Summary for Best Buy is then displayed. It contains valuable information pertinent to this assignment. On the screen capture shown below, I ve arrowed some of the important data. Please take the time to explore the links on this and other s. You re here, on the Summary. Co. Name, Ticker Symbol, Stock Exchange offering this stock for sale. 52 week range of the stock price You ll be going to these web s for the data table info. The ending price on Friday was 15 cents per share lower than the previous day. Previous price of the stock at the end of the previous day. Price/Earnings Ratio N/A indicates that it is currently a negative number. Dividend paid per share and its yield the past quarter. Step 5: Use the information from this Summary, as well as information from the Company Profile, and Analyst Estimates s to complete the stock data table for Best Buy. Note: In Step 1 you were instructed to download a blank copy of the stock data table from the class web site and open it in word processing. If you have done so, key the information you find during your search of information into the appropriate cells. What if you can t open the blank data table? If you cannot open the blank data sheet in the word processing program that you re using, key the information into a word processing document, using the exact headings used in the table to identify your information. To help you locate the relevant information more efficiently, I ve indicated on the following data table example (p. 5), the web locations for the given criteria. 3

52 week range of the stock price You ll be going to these web s for the data table info. The ending price on Friday was 15 cents per share lower than the previous day.

4 Do you need help understanding any or all of these financial terms? Posted on the class website is a special stock market web containing this form, with hyperlinks to definitions for each of the terms (and even some videos). Check it out! Just click on the link to the Stock Market Resource Page and you ll get to this Then click on the link for the Stock Project Data Table and you ll get to the data table with hyperlinks for each stock market term. See below. 4

each of the terms (and even some videos). Check it out!

5 There is also a link for key definitions on the in Yahoo Finance. (Scroll to bottom of. Click on Help.) Stock Data Table Example (showing web locations for financial data) BUS 1101 Intro to Business Stock Market Project Part One Your Name: Stock Data Table Company Name/Description Industry Ticker Symbol Stock Exchange Price of Stock per Share (a.k.a. Last Trade) Date of the Given Stock Price This company name and description is from Company Profile Best Buy Co. Inc. Best Buy Co., Inc. operates as a retailer of consumer electronics, home office products, entertainment products, appliances, and related services primarily in the United States, Europe, Canada, and China. Important Data Find this on Company Profile Find this on Summary Note that the entire description for the company wasn t copied and pasted into the cell. Don t copy and paste the entire description! Summary Summary Summary Company CEO Profile Market Capitalization Summary Revenue Estimated Revenue (Next Year) Analyst Estimate 52 week range Summary % held by Institutions Return on Equity Industry Return on Equity Stores * 5

6 Profit Margin Industry Profit Margin Stores * Debt/Equity Industry Debt/Equity Stores * Dividend & Yield Summary Industry Dividend Yield Stores * (P/E) Price/Earnings Ratio Summary Industry P/E Stores * (P/B) Price to Book ratio Industry P/B Stores * (PEG) Price/Earnings to Growth ratio (P/S) Price/Sales Quarterly Revenue Growth Quarterly Earnings Growth Estimated Growth (This year) Analyst Estimates Estimated Growth for Industry (This year) Analyst Estimates Estimated Growth (Next year) Analyst Estimates Estimated Growth for Industry (Next year) Analyst Estimates * Are you having difficulty finding the Industry Center Electronic Stores? Click on the link for Industry _ 6

Quarterly Earnings Growth Estimated Growth (This year) Analyst Estimates Estimated Growth for Industry (This year) Analyst Estimates Estimated Growth (Next year) Analyst

7 The Industry will be similar to this Scroll down until you find the link for Industry Summary 7

8 Look on the right-hand side of the for the table named, Industry Statistics. Step 6: Using the information from the financial data reported in your stock data table, draw three major conclusions about whether or not investing in Best Buy stock right now, would be a good idea. Key these conclusions in the cells following the table. State your conclusion and then give your reason. Your conclusions and rationale are the most important part of this assignment. Here s an example of a conclusion with rationale for a different company (Amgen). (This is the conclusion) Amgen s ROE is much higher than the industry average, showing that this company provides a higher return on investment to its shareholders than most of its competitors in the biotechnology industry. (This is the rationale.) The Return on Equity of Amgen is 18.67% which is higher than the industry average of 8.70%. A rule of thumb for investors is to identify companies that have a significantly higher ROE compared to others in its industry. Amgen is performing better than their competitors and is using its assets wisely. Here s another example (St. Jude Medical) (This is the conclusion) St. Jude is a current top performer in the Medical Appliances industry and is expected to grow over 8% in the coming year. (This is the rationale.) Even during a bad economy, St Jude s revenue growth of 11.5% was significantly greater than the average industry growth of 8.6%. Its earnings growth of 8.7% is higher than the industry average of 6.9% and most importantly, its profit margin is an impressive 16.33% which tops their two biggest competitors, Boston Scientific and Edwards Lifesciences. 8

Key these conclusions in the cells following the table. State your conclusion and then give your reason. Your conclusions and rationale are the most important part of this assignment.

9 Step 7: Save your document as Your Last Name First Name BBY Data Table. e.g. Widdel Mark BBY Data Table. Make sure you save your document in MS Word format. (If you re using MS Works or a different program, use the Save As command to save it in Word format.) Upload a copy to the D2L drop box named BBY Data Table by the assigned deadline. 9

(If you re using MS Works or a different program, use the Save As command to save it

Stock Market Project Part One

Introduction to Business Coon Rapids Classes Stock Market Project Part One Deadline: 8:00 AM Monday, Sep 23 Upload to: D2L drop box: BBY Stock Data Table Value: 53 points Save with this file name: Overview