Good stock codes today help investors optimize their investment portfolio effectively. Join HVA to explore the potential list of growth stocks.
1. Criteria for selecting good stock codes today
The Vietnamese stock market is in a period of strong fluctuations, but also opens up attractive investment opportunities. Choosing good stock codes today is an important factor in building an effective portfolio.
So, good growth stocks Which stocks are attracting investors? This article will analyze the list of potential stocks, how to choose cheap and effective stocks, helping you invest smarter.
1.1. Revenue and profit growth
Businesses with steady revenue and profit growth tend to attract long-term investors. A business with steady profits and strong quarterly growth usually reflects solid financial health. In particular, good stock codes today Having a compound annual growth rate (CAGR) of after-tax profit over 10% is a positive sign.
For example, FPT has an annual revenue growth of over 20%, which helps FPT stock always be on the list of good stocks for long-term investment.
In addition, comparing the revenue of types of stocks on the stock market Quarterly revenue helps determine the stability of the business. If revenue continues to increase quarter to quarter without any significant decline, it is a positive sign.
1.2. High return on equity (ROE)
ROE >15% usually shows that the company is managing its assets well and generating profits efficiently. If ROE remains stable or increases over the years, it is a sign that the company is able to use capital effectively to generate profits.
For example, Vietcombank (VCB) has maintained ROE above 18% for many consecutive years, demonstrating high profitability.
A company with a high ROE not only shows good profitability but also reflects the quality of corporate governance. Companies with stable ROE are often those with sustainable business models.
1.3. Reasonable debt/equity ratio (D/E)
Too high a D/E ratio implies financial risk. This ratio should be maintained at a reasonable level (for the financial sector: <5, manufacturing sector: <2). A company with too high a D/E ratio will be under a lot of financial pressure, especially in the context of rising interest rates.
For example, Techcombank (TCB) maintains a D/E ratio below 2, helping the bank ensure stability.
Businesses with low debt are less likely to be exposed to interest rate pressures, especially during periods of financial market volatility. A reasonable D/E ratio helps businesses maintain flexibility in their financial strategies.
1.4. Strong cash flow
Business with stable positive cash flow demonstrate the ability to sustain operations. Companies with positive operating cash flows for five consecutive years will be on a stronger financial footing than companies with negative or fluctuating cash flows.
Strong cash flow also helps businesses have enough resources to expand business operations and invest in long-term projects without relying too much on borrowed capital.
2. List of potential cheap stocks 2025
Which stock code is the best now? and are cheap in 2025. Here are the stocks with good growth prospects:
2.1. Technology group
- FPT (FPT): Leading the Vietnamese technology industry, average revenue growth of 20%/year.
- CMG (CMC Corp): Strong growth rate thanks to intensive investment in AI and blockchain.
The technology sector is benefiting from the digital trend and the explosion of artificial intelligence (AI). Companies with long-term strategies in this area will continue to thrive.
Technology companies typically have higher profit margins than traditional industries, making them a good group of stocks to consider for a long-term portfolio.
2.2. Banking group
- VCB (Vietcombank): Net profit increased steadily, debt/equity ratio was stable.
- TCB (Techcombank)Strong cash flow, systematic growth strategy.
Banking is the backbone of the economy, and banks with good risk management strategies and a focus on retail will have the potential for stable growth.
Banks with a high CASA ratio (ratio of demand deposits to total deposits) often have a competitive advantage, as it helps them raise capital at a lower cost.
2.3. Retail group
- MWG (Mobile World): High profit margin, wide retail network.
- PNJ (Phu Nhuan Jewelry): Net profit remains high.
The retail industry has always been attractive to investors due to its high consumer demand. Companies with strong brands and efficient supply chain management will have a competitive advantage.
Gross profit margin and sales growth rate per store are important factors in assessing the growth potential of a good stock company codes Top retail business.
3. How to choose the best stock code
3.1. Financial statement analysis
Read financial statements along with the investment knowledge will help investors evaluate the business's performance. Pay attention to indicators such as EPS, P/E, P/B to determine stock valuation.
Financial metrics to watch include gross profit margin, net profit margin, and free cash flow (FCF). A consistently positive FCF is a positive sign.
3.2. Assessing industry potential
Industries with long-term potential such as technology, finance, and renewable energy often yield higher returns than highly cyclical industries.
For example, the renewable energy industry is attracting great interest from governments and global investors.
Industries that have support from government policies or global trends often have a better chance of thriving.
3.3. Observe market trends
Understanding cash flow trends helps investors make timely decisions. Stocks with large cash flows will have more opportunities to increase in price.
Factors such as monetary policy, interest rates, and macroeconomic trends all influence investment flows in the stock market.
4. Effective stock investment strategy
4.1. Value investing
Define: Value investing is a strategy of finding stocks that are undervalued relative to their intrinsic value.
For example: Legendary investor Warren Buffett always looks for companies with solid financial foundations but whose stock prices are lower than their actual value.
Recommendation:
- Focus on companies with P/E ratios lower than the industry average.
- Consider the P/B ratio to determine a company's book value.
- Choose stocks of companies with high ROE and sustainable growth.
4.2. Growth investment
Define: This strategy focuses on companies with high revenue and profit growth rates.
For example: Apple and Tesla stocks are both prime examples of growth investing, as their value has increased dramatically over time due to market share expansion and technological innovation.
Recommendation:
- Choose companies with high CAGR (compound annual growth rate).
- Consider gross profit margin to assess profitability.
- Watch cash flow to ensure the business is able to finance growth without taking on too much debt.
4.3. Dividend investment
Define: This strategy focuses on stocks with high dividend payout policies, suitable for investors looking for stable income.
For example: Companies in the electricity, water, and telecommunications sectors often have a policy of paying regular dividends, such as Vinamilk (VNM) or REE.
Recommendation:
- Choose stocks with high dividend yield (dividend yield >4%).
- Look at the company's dividend history for at least the last 5 years.
- Evaluate the potential for dividend growth over the years to ensure a sustainable source of income.
5. Risks when investing in stocks and how to minimize them
5.1. Market risk
Define: Market risk is the volatility of stock prices due to economic, political, or investor sentiment factors.
For example: The 2008 financial crisis caused the value of most stocks to plummet, affecting all investors.
How to reduce:
- Diversify your portfolio so you don't rely on a single industry or stock.
- Follow economic news and monetary policy to predict market trends.
5.2. Liquidity risk
Define: Liquidity risk occurs when stocks are difficult to sell because there are not many buyers.
For example: Stocks of small or thinly traded companies can get stuck if an investor wants to exit but doesn't have enough liquidity.
How to reduce:
- Choose stocks with high average daily trading volume.
- Prioritize investing in blue-chip stocks or stocks with large market capitalization.
5.3. Business risks
Define: This risk is related to the business's ability to operate and manage.
For example: A company with high bad debt or opaque management can depress its stock value.
How to reduce:
- Analyze a company's financial statements to assess stability.
- Follow information about the company's leadership and long-term development strategy.
5.4. Interest rate risk
Define: When interest rates rise, the cost of borrowing becomes higher, affecting corporate profits and stock values.
For example: When central banks raise interest rates, real estate companies are often hit hard due to their reliance on large loans.
How to reduce:
- Avoid investing too much in interest rate sensitive sectors like real estate and banking when interest rates rise.
- Monitor monetary policy to adjust portfolio accordingly.
Conclude
Investing in good stock codes today need to understand business strategy and finance. From the article HVA share, investors should research carefully before making investment decisions. With the right stock selection criteria, investors can find effective investment opportunities in 2025.
