Every stock purchase starts with a simple question: do I understand what this business does and how it makes money? Start with the company overview — sector, industry, revenue drivers, and competitive position.
Next, review financial performance: revenue growth, margins, free cash flow, and balance-sheet leverage. A great story with weak numbers rarely ends well.
Finally, compare valuation to history and peers. A stock can be a good company and still be a bad investment at the wrong price.