how can one tell if a stock may increase in value in the future or what...

how can one tell if a stock may increase in value in the future or what may one look for? Give four examples stocks that may increase in value in the future.

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Expert Solution

The growth of the business and the organization as well as the future cash flows of the business must be taken into account while valuation of stock. This is based upon discounted future cash flows model. If the anticipated growth is high, its stock will also be valued higher. Value of a stock may also be higher if the company is entering a new field of business or innovating into the future technology. You can also look for the dividend trends and use the dividend discount model to value the stock.

Starbucks is one such stock which is expected to grow in future. Its entry into the China and Asia Pacific region is the driving force. NXP Semiconductors is another Such stock. Efficient investment by management and aggressive buybacks have boosted the stock. Facebook is also expected to rise in future due to its sheer number of users and brilliant marketing strategies. Stitch Fix specializes in doorstep tailoring and is expected to see high growth in future.

jeff jeffy answered 3 months ago

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