1. SMG STOCK RESEARCH
WORKSHEET
PRESENTED BY NANCY B. KING,
ALASKA SMG COORDINATOR
MODERATED BY VINCENT YOUNG,
DIRECTOR OF CURRICULUM INITIATIVES

2. Based on
One Up On Wall Street :
How To Use What You
Already Know To Make
Money In The Market
by Peter Lynch and John Rothchild

4. FUNDAMENTAL ANALYSIS
• Uses company financial data to determine
health of a company
• SMG Stock Research Worksheet uses 6 pieces
of financial data
1. Earnings Growth Rate
2. Sales Growth Rate
3. Profit Margin
4. PEG Ratio
5. Debt-to-Equity Ratio
6. Percent of Institutional ownership

5. COMPANY PROFILE
Morningstar
Morningstar
Reuters

6. GROWTH RATES: EARNINGS-PERSHARE (EPS) AND EPS FORECAST

7. EPS GROWTH RATE DATA
To Find the Data on Morningstar

8. EARNINGS-PER-SHARE 5-YEAR
GROWTH RATE FORECAST
Analysts estimate of
company’s growth rate in
the next 5 years.
To Find the Data on Morningstar

9. SALES/REVENUE GROWTH RATE

10. SALES/REVENUE DATA LOCATION
To Find the Data on Morningstar

11. PROFIT MARGIN

12. PROFIT MARGIN
To Find the Data on Morningstar

13. COMPANY PROFIT MARGIN VS
INDUSTRY AVERAGE

14. COMPANY NET MARGIN VS INDUSTRY
AVERAGE
To Find the Data on Morningstar

15. PEG RATIO

16. PEG RATIO
To Find the Data on Morningstar

17. PEG GUIDELINES FOR QUALITY STOCKS
Is the stock overpriced or is it a bargain?
0.5 to 0.9 The stock is a bargain if it is a quality company.
1.0 to 1.5
The stock is reasonably priced.
2.0 to 2.5
The stock is overpriced.

18. DEBT RATIO

19. LONG-TERM DEBT-TO-EQUITY
To Find the Data on Morningstar

20. INSTITUTIONAL OWNERSHIP

21. INSTITUTIONAL OWNERSHIP
To Find the Data on Morningstar

22. STOCK PRICE
To Find the Data on Morningstar

23. STOCK’S CURRENT PRICE TREND

24. STOCK PRICE TRENDING UP
STOCK PRICE TRENDING DOWN
Free Stock Charts.com

25. MCDONALD’S PRICE TREND
To Find the Data on Morningstar

26. WRAP-UP QUESTIONS

27. THE SMG STOCK RESEARCH WORKSHEET
• Presents one way to evaluate a company
• Does not guarantee success
• Provides a systematic way to analyze a company
• Allows students to base their stock decisions on solid information
• Provides an alternative to guessing and to someone’s hot tip

28. RESOURCES
•
•
•
•
•
•
•
Morningstar.com -- comprehensive data
Reuters.com -- good narrative about companies
Finance.yahoo.com -- I use their portfolio feature
Google.com/finance -- I like their variety
Bloomberg.com -- excellent for stock news
theMint.com -- for students
SmcKids.com -- from Warren Buffet kids tv program

29. INVESTING
• is a craft
• is an art, not a precise science
• requires patience, persistence, consistency
• requires objectivity, discipline, responsibility
These are listed at the conclusion of the Teacher Guide

30. COMMON CORE ELA ANCHORS
• Integration of Knowledge and Ideas
• CCSS.ELA-Literacy.CCRA.R.7 Integrate and evaluate
content presented in diverse media and formats,
including visually and quantitatively, as well as in words.
– CCSS.ELA-Literacy.CCRA.R.10 Read and
comprehend complex literary and informational texts
independently and proficiently.

31. INTEGRATION OF KNOWLEDGE AND
IDEAS (GRADES 11-12)
• Science and Technical Subjects
• CCSS.ELA-Literacy.RST.11-12.7 Integrate and evaluate
multiple sources of information presented in diverse formats
and media (e.g., quantitative data, video, multimedia) in order
to address a question or solve a problem.
– CCSS.ELA-Literacy.RST.11-12.8 Evaluate the hypotheses,
data, analysis, and conclusions in a science or technical
text, verifying the data when possible and corroborating or
challenging conclusions with other sources of information.
– CCSS.ELA-Literacy.RST.11-12.9 Synthesize information
from a range of sources (e.g., texts, experiments,
simulations) into a coherent understanding of a process,
phenomenon, or concept, resolving conflicting information
when possible.

32. INTEGRATION OF KNOWLEDGE AND
IDEAS (GRADES 6-10)
• Science and Technical Subjects
– CCSS.ELA-Literacy.RST.6-8.7 Integrate
quantitative or technical information expressed
in words in a text with a version of that
information expressed visually (e.g., in a
flowchart, diagram, model, graph, or table).
– CCSS.ELA-Literacy.RST.9-10.7 Translate
quantitative or technical information expressed
in words in a text into visual form (e.g., a table
or chart) and translate information expressed
visually or mathematically (e.g., in an equation)
into words.

33. SPEAKING AND LISTENING
• Presentation of Knowledge and Ideas
– CCSS.ELA-Literacy.SL.11-12.4 Present information,
findings, and supporting evidence, conveying a clear
and distinct perspective, such that listeners can
follow the line of reasoning, alternative or opposing
perspectives are addressed, and the organization,
development, substance, and style are appropriate
to purpose, audience, and a range of formal and
informal tasks.
– CCSS.ELA-Literacy.SL.11-12.5 Make strategic use
of digital media (e.g., textual, graphical, audio,
visual, and interactive elements) in presentations to
enhance understanding of findings, reasoning, and
evidence and to add interest.

34. COMMON CORE MATH
• Modeling (HS Domain)
• Statistics and Probability (MS)
– Using data samples to draw general
conclusions and identifying patterns.

35. SMG SKILLS

36. THANK YOU
Open for Questions