Key Stock Indicators

Stock Market Graph
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An accomplished finance and investment professional, Rhona Vogel brings more than three decades of experience to her role as CEO of Vogel Consulting. In overseeing the wealth management firm, Rhona Vogel stays current on industry topics such as stock market performance. 

Stock market indicators are key tools for successful trading. There are numerous indicators investors can rely upon to provide valuable insights into the movement of a stock as well as signal the best time to buy or sell. 

Major indicators investors should keep an eye on include Earnings per Share (EPS), the amount each share would fetch if a company decided to pay out all its profit to its shareholders. EPS is computed by dividing the total profit of a company by the number of its shares.

Price to Earnings ratio (P/E) compares a company’s earnings and its stock price. To get the P/E ratio, divide a company’s current share price by its EPS.

Lastly, Price to Book value ratio (P/B) compares how a company is valued by the market versus what the company states in its financial books. It is computed by dividing the current price per share by the book value – the current equity as listed in its annual report – per share.