To evaluate long-term investments in the stock market which are the best and relevant analysis that could be suggested?

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Chart reading is an important analysis to consider before making a long term investment.

Simple price action on a 5 year weekly chart will give you a good view as to where the value of a stock is heading in the long term.

Avoid companies with long consolidation periods and price corrections.

There lies a lot of skepticism when it comes to investment in the stock market concerning the best long term stocks and which aren’t. 

What is a long term investment?

When you look at a long-term investment, you need to take into account or study the company’s asset side. Like the company’s balance sheet, it’s investments which include real estate, bonds, stocks, and cash.

The difference between a Long term investment account and short-term investment account is that Long term investments can never be sold till maturity as for short-term investments it can be sold even before maturity.

How to identify a good buy – term buys

Analysts use certain factors to inspect and decide a financially healthy stock. Example: a good buy would be that one which falls below its actual value.

Strategies/Indicators determining a stock value

Dividend Consistency
Look at the past four to five years consistency of the company which will give you an idea of its

Stability depending on its ability to pay and raise dividends which come from current earnings.

P/E ratio

Compare the P/E ratio of the company with the market or overall industry for, e.g.,  if the P/E ratio of the market is 12 and the P/E ratio of the company is 9 indicating the stock is of much value than the overall market.

Watch Earnings Fluctuate
Depending on the economy earnings rise or fall.  If the company has a strong earnings history, it will be a good long-term buy. Stay away from

Keep Away From Valuation Traps

Look at the company’s debt and current ratio

Suggestions

All Investments need to be done with discipline focusing on the long term goals and the investment objectives. Use the indicators wisely, for you need the patience to reap a good harvest.