Investing can be easy when you use financial ratios for a quick yes/no decisions for your stocks to buy. I'll show you my favorite ratio analysis and reveal three stocks I'm buying right now. ⏩ Don't miss the rest of our Better Investor Series https://www.youtube.com/playlist?list=PLjsZ3KrTlZoyrwRMoEEWtcw_vwJLFAdGk
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Learning how to analyze stocks doesn’t have to feel like getting going back to school. In this video, I'm breaking down the nine most important financial ratios every investor needs to know to find the best stocks to buy now. These are the same tools professional analysts use to compare companies like Nvidia vs AMD, Palo Alto vs CrowdStrike, and Meta vs Alphabet — so you can spot which stocks are truly the strongest.
We’ll walk through profitability ratios like gross margin, operating margin, and net margin to measure how well companies convert sales into profit. Then we’ll look at return on equity (ROE) to see how efficiently management uses shareholder money to create returns. Next, you’ll learn solvency ratios like debt-to-equity and interest coverage, critical for finding companies that won’t get buried in debt during the next downturn. We’ll also cover liquidity ratios like the current ratio and cash ratio to spot which companies can survive tough times, plus a look at cash flow growth versus earnings growth — one of the most overlooked red flags investors miss before a stock crashes.
By the end of this video, you’ll know how to use these financial ratios to compare stocks side-by-side, identify competitive advantages, and make better long-term investing decisions. Whether you’re brand new and looking for a beginner’s guide to investing, or you’ve been in the market for years and want to level up your stock analysis, this is your step-by-step playbook for smarter investing.
This isn’t just theory — we’ll apply these ratios to some of the top stocks to watch right now, showing you exactly how to use the numbers to narrow your watchlist. You’ll see why Palo Alto’s operating margin gives it an edge, how Meta dominates in profitability compared to Alphabet, and what makes Nvidia’s financials stand out among chipmakers.
Joseph Hogue, CFA spent nearly a decade as an investment analyst for institutional firms and banks. He now helps people understand their financial lives through dividend stocks, investing and ways to make more money. He has appeared on Bloomberg and on sites like CNBC and Morningstar. He holds the Chartered Financial Analyst (CFA) designation and is a veteran of the Marine Corps.
Disclosures: All content on this channel is for informational purposes only and should not be construed as professional financial advice or recommendation to buy or sell any securities. Trading stocks, ETFs, other securities, and/or cryptocurrencies poses a considerable risk of loss. Neither host or guests can be held responsible for any direct or incidental loss incurred by applying any of the information offered. The content of this video is solely the opinions of the speaker who is not a licensed financial advisor or registered investment advisor. Should you need such advice, consult a licensed financial or tax advisor. When you make purchases through links in this video description, the author may earn a commission.
