Stocks to buy: Use Altman Z-score to select solid stocks; here are 5 stocks with upside potential of up to 34%
Market experts prioritise investments in quality companies with strong fundamentals.
Synopsis
The Altman Z-score is derived from a blend of financial ratios extracted from a company’s balance sheet and income statement. Its formula incorporates variables like working capital, retained earnings, earnings before interest and taxes (EBIT), market value of equity, and total assets. Essentially, this tool amalgamates diverse financial ratios to assess the company’s operational strength, liquidity, solvency, profitability, and leverage. For a comprehensive financial stability evaluation, experts recommend using the Altman Z-score. Read here to find out.
The volatility in equity market is rising, with the India Volatility VIX index closing above 18 on 9 May, its highest since October 2022. It averaged 13.8 year-to-date, against 12 in the fourth quarter of 2023 and 12.4 for all of 2023.Experts foresee continued market volatility due to global macroeconomic and geopolitical risks, coupled with uncertainty around the upcoming elections and high valuations. Signs of slowdown in the EU and US
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