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Did you know that you can build your own simple web-based application even without programming skills? Read my detailed guide and download the code to extract stock target prices, social sentiment, and earnings data, and to define the strength of the trend for your selected stock. This knowledge will help you understand when is the best time to buy stocks.
You will be able to build your first app using JavaScript even if you have never coded before. I divided my development process into three stages and wrote three separate articles for each stage. If you don't want to read and learn, you can just download VSCode, download my code (JS and HTML files), open them with VSCode, and drag the HTML file to an open browser window to get a working stock market app. Please keep in mind that in order to make your app work correctly you need to use API key. Use my referral link to get Premium Financial modeling Prep endpoints. But you can also use a free version, if you want. Once you register with Financial modeling prep and get your custom key, input it to the Script.js file where it says const apiKey = ""; Input the key inside ""
And if you want to learn and follow step-by-step app creation process, read the below articles.
Stock target price extraction.
EPS extraction, putting all parts together, and making our web app look beautiful.
The stock target price shows share growth potential based on FCF growth estimates, cost of money, projected company growth dynamics, and many other factors. If a company's stock target price is greater than its market price, it means the stock is undervalued. If the market price is higher than the stock target price, the stock is overvalued. If the market price equals the target price, the stock is fairly valued.
Social sentiment shows traders' expectations for your selected stock. Social sentiment is extracted by scanning social media, such as Twitter, and counting positive, negative, and neutral mentions. If a stock has more positive mentions, it means that traders expect the stock to rise in value.
EPS data provides a powerful indicator for analysts and traders. If a company's actual EPS is better than analysts' EPS expectations, traders gain higher confidence in the stock, which can mean that the stock will grow in value soon. EPS also serves as a great indicator of a company's strength when compared to the EPS of its closest peers.
All three indicators combined provide a strong indication of the strength of the trend. If your selected stock has strong growth potential, many positive mentions, and actual EPS higher than analysts' expectations, the share price can have strong growth support and a high probability of rising or maintaining its upward trajectory.
If you are interested in calculating stock target price manually using custom assumptions you can use several valuation models:
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Dividend Discount Model (DDM)
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Discounted Cash Flow Model (DCF) one of the most popular valuation model.
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Price income model, simplest valuation model that requires you to use minimum assumptions.