Assume as a member of an Investment Club it is your turn to recommend 3 companies to the group for possible investment and one additional company of your choice. From those listed below what would be your top 3 picks (in priority order), your team’s additional choice, and rationale for each.
| Recent Price per Share | Earnings per Share
(EPS) |
Price / Earnings Ratio (P/E) | Dividends per Share | Return on Equity (ROE) | Book Value per Share | Your Rank | |
| Apple | $119.88 | $2.58 | 9.22X | $0.73 | 70.66% | $120.71 | 3 |
| Apollo Group | $3.95 | $0.590 | 15.0X | $0.49 | -12.20% | $18.51 | |
| Exxon | $34.46 | $-0.700 | 20.33X | $0.82 | 3.72% | $44.27 | |
| FedEx | $284.08 | $2.530 | 40.80X | $2.6 | 9.49% | $74.12 | 2 |
| GE | $7.30 | $-2.62 | 25.85X | $0.04 | -15.10% | $4.03 | |
| $1,568.65 | $10.130 | 34.21X | $0.65 | 15.62% | $304.34 | 1 | |
| Merck | $79.84 | $1.370 | 19.64X | $2.38 | 39.18% | $10.97 | |
| PNC | $110.70 | $-1.900 | 7.1X | $4.60 | 14.02% | $124.58 | |
| Southwest | $39.48 | $-2.670 | 141.8X | $0.36 | 1.64% | $18.44 | |
| Weis Market | $49.21 | $1.54 | 18.39X | $1.24 | 9.41% | $41.32 | |
| Team Choice:
Amazon
|
$3,324.67 | $10.30 | 132.40X | $0.00 | 20.47% | $147.16 |
#1: Google
Why:
Google company has the highest market value with a price of $1,568.65 per share. This high price of its stock shows that the company is stable in the market. Besides, the earnings per share are relatively high at $10.130 per share, indicating that investors will get more money from their share. Furthermore, the dividends are competitively average with $0.73 per share.
#2: FedEx
Why:
FedEx company have a good stock market value of $284.08 per share. With this relatively low price, an investor can purchase many shares which in turn will get an earning of $2.530 per share. Also, the dividends per share are high with $ 2.6 hence higher profits.
#3: Apple
Why:
Apple has an earning of $2.58 per share. With more shares, an investor can get good return on investment. Also, the price of $119.88 per share shows that the company has stable market value. Moreover, the book value per share is high with a price of $120.7.
My Investment Team Choice:
Why:
I selected the Amazon company because its market value of stock is high with $3,324.67 per share. The high stock value shows that the company is doing well in the market. Also, it has better earning per share of $10.30 per share. Therefore, if one owns many shares with the company, he is likely to get more profits. Ultimately, its book value per share is high with a price of $147.16