Top 3 Stock Recommendations Bellalisa Gomez Samantha Browne Erica Allen

Five Rules Used to Evaluate Stocks  Current Stock Price  52 - week Price Range  Price/Earnings Ratio  Earnings per Share  Dividends per Share Bellalisa Gomez, Samantha Browne, Erica Allen2

Current Stock Price  The market value at which a stock is currently being sold.  This price is determined by both the buyers and sellers in an open market. Bellalisa Gomez, Samantha Browne, Erica Allen3

52 - Week Price Range  The highest and lowest prices in which a stock has been traded in the previous 52 weeks.  This is used to gain a broad sense of how the stock is performing, as well as how much the stock’s price has been fluctuating.  Information given can indicate the potential future range of a stock or how volatile the shares can be. Bellalisa Gomez, Samantha Browne, Erica Allen4

Price/Earnings Ratio  A valuation of a company’s current share as it compares to its earnings per share.  In general a high Price/Earning ratio proposes that investors are anticipating a higher growth in the future.  This can be used to estimate earnings in order to gain a forward looking Price/Earning ratio.  Companies who are losing money will not have a Price/Earnings ratio. Bellalisa Gomez, Samantha Browne, Erica Allen5

Earnings per Share  Net Income – Dividends on Preferred Stock /Average Outstanding Shares  Portion of a company’s profit distributed to each outstanding share of a common stock.  Indicator of a company’s profitability.  Most important variable when determining the price per share.  A major component in calculating the Price/Earning ratio.  Capital is required to produce earning in the form of net income. Bellalisa Gomez, Samantha Browne, Erica Allen6

Dividends per Share  The sum of the stated dividends for every ordinary share issued.  The total dividends that were paid out over an entire year (interim dividends included but special dividends excluded) divided by the number of unsettled ordinary shares that were issued.  A form of profit distribution to the shareholder. Bellalisa Gomez, Samantha Browne, Erica Allen7

Top Three Stocks  Bank of America – BAC Financial Services Sector  CVS Health Corp – CVS Healthcare Sector  Pepsi Co. Inc. – PEP Consumer Defensive Sector Bellalisa Gomez, Samantha Browne, Erica Allen8

Bank of America – BAC – Financial Services Sector Bellalisa Gomez, Samantha Browne, Erica Allen9

Bank of America – BAC – Financial Services Sector Current Stock Price : $16.90 Price is between high and low price range meaning it is not a loss. Currently below book value of $ week Price Range: Lowest Range = $14.84 Highest Range = $18.21 Fluctuation of prices has not been significant. Bellalisa Gomez, Samantha Browne, Erica Allen10

Bank of America – BAC – Financial Services Sector Price/Earning Ratio Average = High Price/Earning ratio can be a sign of forward looking earnings. The company is not losing money. The high Price/Earnings ratio may signal growth in the future. Earnings Per Share Average = 0.31 Low Earnings per share could be due to the low risks involved in the stock. Shows earnings which means the share is profitable even if it is low profits. Bellalisa Gomez, Samantha Browne, Erica Allen11

Bank of America – BAC – Financial Services Sector Bellalisa Gomez, Samantha Browne, Erica Allen12 Dividends Per Share Average = $0.31 Similar to the Earnings per Share the low number could be due to the low risks. Money is being reinvested into the company.

Bank of America – BAC – Financial Services Sector Bellalisa Gomez, Samantha Browne, Erica Allen13

CVS Health Corp.- CVS – Healthcare Sector Bellalisa Gomez, Samantha Browne, Erica Allen14

CVS Health Corp. – CVS – Healthcare Sector Current Stock Price : $ In between the high and low price range, but closer to the higher end of the range. May predict a future price increase in the stock. 52 – Week Price Range : Lowest Range = $ Highest Range = $ Fluctuation is low indicating that it is not a volatile stock. Bellalisa Gomez, Samantha Browne, Erica Allen15

CVS Health Corp. - CVS – Healthcare Sector Price/Earning Ratio : Average = High Price/Earning ratio dictates no loss of money in the company. High Price/Earning ratio could predict a growth in future stock. Earnings Per Share : Average = 3.16 Has a trend of increasing over a five year period. A positive Earnings per Share means the stock is profitable. Bellalisa Gomez, Samantha Browne, Erica Allen16

CVS Health Corp. – CVS – Healthcare Sector Bellalisa Gomez, Samantha Browne, Erica Allen17 Dividends Per Share Average = $0.70 Money is being reinvested into the company. Steadily increased over a five year period.

CVS Health Corp. – CVS – Healthcare Sector Bellalisa Gomez, Samantha Browne, Erica Allen18

Pepsi Co. – PEP – Consumer Defensive Sector Bellalisa Gomez, Samantha Browne, Erica Allen19

Pepsi Co. – PEP – Consumer Defensive Sector Current Stock Price : $94.05 The current stock price is in the middle of the price ranges. The stock price seems to be steady and not to be on the decline in the future. 52- Week Price Range Lowest Range = $87.07 Highest Range = $ No major fluctuation in prices over 52 weeks. The current stock price is mid- range, therefore, there has been no large decline in price. Bellalisa Gomez, Samantha Browne, Erica Allen20

Pepsi Co. – PEP – Consumer Defensive Sector Price/Earnings Ratio : Average = High Price/Earning ratio shows potential growth in the company’s stock. Good investment for the amount of earnings to be received compared to the price. Earnings Per Share : Average = 4.12 Steady trend of increasing over the past five years, with only slight fluctuations. Shows a profit is earned. Bellalisa Gomez, Samantha Browne, Erica Allen21

Pepsi Co. – PEP- Consumer Defensive Sector Bellalisa Gomez, Samantha Browne, Erica Allen22 Dividends Per Share Average = 2.24 Steadily increased over a five year period. Stability in the stock.

Pepsi Co. – PEP – Consumer Defensive Sector Bellalisa Gomez, Samantha Browne, Erica Allen23

Works Cited Bellalisa Gomez, Samantha Browne, Erica Allen24