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Beginner’s Guide to the Yahoo Finance Numbers (Updated)

Let’s assume you are an absolute beginner when it comes to using ticker systems like Yahoo Finance. The world of stock investments might seem confusing and overwhelming, with plenty of symbols and slang.

Don’t worry. I’ve broken down the basics to the stock market before, with my beginner’s guide having been viewed over 100,000+ times, and I’ll do the same for the standard Yahoo finance interface.

finance binder

I’m going to go through each individual category and explain exactly what each of the abbreviations means.

Getting Started: Using Yahoo Finance (Example)

Now the first thing you’ll see when you enter Yahoo finance’s main page is a search bar at the top, and then a convolution of charts, ads, video links, article links, broker ads, games ads… the list goes on. That top search bar is going to be the place where you’ll find the most use and get the most data for stock market investing.

Every stock that is publicly traded will have its own ticker symbol. This symbol holds the key to all of the charts and data behind that stock.

For this how-to guide, we’re going to use the ticker for the biggest stock in the market right now, Apple Inc (AAPL).

When we type AAPL into the search bar, a myriad of data immediately hits our screen. If you are following along, it should look like this:

Right away, there’s a big number in bold. That’s the current price of the stock.

AAPL stock price and change

In smaller numbers and in either red or green color is the difference in the stock price for today. You’ll see, in this order, an arrow going up for gain and down for loss, the amount of dollar value ($) gained or lost for the day, and the percentage of that difference compared to the price.

Next, we have the Previous Close. This is pretty straight forward as the previous close value. The previous close is the price of the stock when the market closed yesterday.

previous close price of AAPL

Keep in mind throughout this guide that the market hours for US exchanges such as the NYSE are 9:30am EST- 4:00pm EST. Other markets in other countries and time zones operate on their own schedule. As an investor, you can technically put in a trade at any time in the after hours.

The Open is the price of the stock when the market opened on this day.

open price of AAPL

Now getting technical with the nuts and bolts behind the stock price, we have the bid and the ask.

The bid is the highest price a potential stock purchaser is willing to buy the stock at, and at that particular quantity. It’s the broker’s job (like Ally or Merrill Lynch) to match new clients’ transactions with bids or asks.

bid and ask prices of AAPL stock

The ask is similar to the bid but is just the opposite. The ask is the lowest price a stockholder is willing to sell his stock for.

In both the bid and the ask, buyers and sellers of the same stock are competing with each other and essentially lining up orders for the brokers to fill. It works almost like an auction market would, with the best price on either side of the bid or ask skyrocketed to the top.

The next sections– Day’s Range, 52 Week Range, Volume, and Avg. Volume– tell you the ranges that the stock has traded in the given time period, and how many shares have traded hands today (Volume) and on average (Avg. Volume).

stock data for AAPL from yahoo finance

Next, on the bottom right we have the 1y Target Est. Again, this is a straightforward definition. 1 year target estimate is simply the price that analysts have predicted the stock will be one year from now.

1 yr target estimate of AAPL yahoo finance

The reliability behind these estimates are the true question here. The way I see it, the accuracy of an estimate has the same chance as any other estimate. It really is a 50-50 guess, and the stock could easily beat the estimate just as easily as fail the estimate.

The game of prediction is a fickle one. Forecasters are wrong just as much as they’re right when it comes to the weather, and they even have the luxury of technology giving us 12 hour lookbacks and predictive wind patterns. Sports forecasters are just the same. An estimate is as good as its analyst, and for the finance sites it could be anyone.

Yet when I’m looking at a stock that I’ve already deemed favorable… I’ll admit I take a favorable target estimate in a positive light.

Beta

This next number I want to highlight has to do with an advanced financial topic called volatility. Basically volatility measures how much movement a stock has gone through in its recent history. [When talking about recent history with stocks, it usually means 1 month, 3 months, 6 months, 1 year, 2 years, 5 years or 10 years].

A stock with much more buys than sells, or sells than buys, will have a higher volatility than a stock that has stayed relatively unmoved. Beta comes into the equation when you want to compare a stock’s volatility to the average of the market.

A stock with a beta of 1 is moving at the same volatility as the market. A stock with a beta greater than 1 is moving with greater volatility than the average, and a stock with a beta less than 1 has less volatility than the average.

beta of AAPL on yahoo finance

To read more about how beta drives stock valuation, click on this link.

The next metric to highlight on this column for Yahoo Finance is the next earnings release date. Earnings releases are important for two reasons.

earnings release date of AAPL yahoo finance

Number one, this is when the performance of a company is evaluated. Results are compared to estimates, and the stock price will move based on this data.

Secondly, new estimates are released on this day as well. When estimates guide lower, a more bearish sentiment surrounds the stock on the street. Of course, estimates guiding higher show a general abundance of earnings and can mean well for the stock moving forward.

You’ll tend to see a good amount of movement in the share price around earnings time. The caveat is that sometimes these movements are purely irrational. Meaning the stock could be crashing lower or surging higher regardless of the logic. Something to keep in mind for the investor out there.

The company’s ex-dividend date, or date preceding that an investor needs to hold the stock by to receive its dividend (usually the day before the ex-div), tends to either be announced around the earnings release. Keep that in mind as well.

ex-dividend date AAPL yahoo finance

Next let’s look at Market Cap, which is short for market capitalization. Market capitalization is the total size of a company in the stock market. It represents how many people own shares in the stock market, and moves up as the share price moves up.

Market capitalization is an easy calculation. It is the number of shares outstanding multiplied by the share price of a stock. For example, if there are 100 total shares of a company on Wall Street, and the company is trading at $5 a share, the market cap would be $500.

To read more about market capitalization, check out this informative guide on it.

AAPL market cap yahoo finance

Besides market cap, the P/E is another standard measuring tool. P/E (TTM) refers to the P/E of the Trailing Twelve Months.

P/E stands for Price to Earnings, and is calculated by dividing Earnings by a stock’s share Price.

PE ratio AAPL yahoo finance

P/E is an extremely useful tool because it reflects the market sentiment surrounding a stock. Generally, a stock with a low P/E isn’t as favored by the market as a stock with a high P/E.

It makes sense if you think of it too. A stock with a higher price will have this characteristic because many people want to buy the stock. Thus, this higher price moves the P/E up.

However, the P/E can also be helpful in finding a company doing very well in the marketplace. Looking at the earnings side of the equation, a company with higher earnings will drive the P/E lower because holding price constant, higher earnings means a lower P/E.

P/E is really just the start of a much longer discussion into analyzing a stock. Once you can begin to understand the working behind the Price to Earnings ratio, you can rely that knowledge into understanding a company’s balance sheet, income statement and cash flow statement.

If you’re interested in attaining this knowledge, you can start with my easy 7 Steps to Understanding the Stock market guide, first with the P/E ratio.

EPS (TTM)

EPS (TTM) is another income statement analysis tool. It stands for earnings per share of the trailing twelve months, and it works as a good marker for how successful a company is doing.

While the earnings part of P/E refers to the total earnings of a stock, EPS allows the investor to compare earnings to each individual share.

It also lets the investor calculate P/E ratio by using the share price. It looks like: Price (by share) / Earnings (by share) or EPS.

To really get a good grasp on the concept of EPS, I highly recommend reading through the 7 steps guide.

EPS for AAPL yahoo finance

Finally, we have dividend and the yield percentage. This tells us how much dividends we will receive per share we purchase. The yield tells us what percentage of a company’s share price the dividend comes out to be.

When it comes to investing in dividends, it’s important to remember that the yield isn’t what’s all that important and profitable in a dividend investment strategy. It’s the growth of that dividend over many years that makes an initial investment very profitable as the years go on.

dividend and dividend yield AAPL yahoo finance

I want to commend you for completing this guide. Hopefully it has done its part in decoding the sometimes challenging stock market numbers behind popular websites like Yahoo finance.

Andrew Sather

Andrew has always believed that average investors have so much potential to build wealth, through the power of patience, a long-term mindset, and compound interest.

Price Target: How to Understand and Calculate Plus Accuracy

Carla Tardi is a technical editor and digital content producer with 25+ years of experience at top-tier investment banks and money-management firms.

Updated March 10, 2022
Reviewed by
Reviewed by Samantha Silberstein

Samantha Silberstein is a Certified Financial Planner, FINRA Series 7 and 63 licensed holder, State of California life, accident, and health insurance licensed agent, and CFA. She spends her days working with hundreds of employees from non-profit and higher education organizations on their personal financial plans.

Fact checked by
Fact checked by Pete Rathburn

Pete Rathburn is a copy editor and fact-checker with expertise in economics and personal finance and over twenty years of experience in the classroom.

Price Target: An analyst's projection of a security's future price.

What Is a Price Target?

A price target is an analyst’s projection of a security’s future price. Price targets can pertain to all types of securities, from complex investment products to stocks and bonds. When setting a stock’s price target, an analyst is trying to determine what the stock is worth and where the price will be in 12 or 18 months. Ultimately, price targets depend on the valuation of the company that’s issuing the stock.

Analysts generally publish their price targets in research reports on specific companies, along with their buy, sell, and hold recommendations for the company’s stock. Stock price targets are often quoted in the financial news media.

Key Takeaways

  • A price target is an analyst’s projection of a security’s future price, one at which an analyst believes a stock is fairly valued.
  • Analysts consider numerous fundamental and technical factors to arrive at a price target.
  • Analysts generally publish their price targets along with their buy, sell, and hold recommendations for a stock.
  • Price targets for the same security can be different because of the various valuation methods used by analysts, traders, and institutions.

Understanding Price Targets

A price target is a price at which an analyst believes a stock to be fairly valued relative to its projected and historical earnings. When an analyst raises their price target for a stock, they generally expect the stock price to rise.

Conversely, lowering their price target may mean that the analyst expects the stock price to fall. Price targets are an organic factor in financial analysis; they can change over time as new information becomes available.

Factors That Help to Determine a Price Target

The price target is based on assumptions about a security’s future supply and demand, technical levels, and fundamentals. Different analysts and financial institutions use various valuation methods and take into account different economic conditions when deciding on a price target.

For fundamental analysts, a common way to discern the price target for a stock is to create a multiple of the price-to-earnings (P/E) ratio—by multiplying the market price by the company’s trailing 12-month earnings.

In some cases, particularly with volatile stocks, analysts will look for additional guidance to form their price targets, which could include reviewing a company’s balance sheet and other financial statements and comparing them to historical results, current economics, and the competitive environment, studying the health of a company’s management, and analyzing other ratios.

Technical analysts use indicators, price action, statistics, trends, and price momentum to gauge the future price of a security. One way that they arrive at a price target is to find areas of defined support and resistance. An analyst will do this by charting a price that moves between at least two similar highs and lows without breaking above or below those points at any point in between.

Special Considerations About Price Targets

For Traders

Traders will generally look to exit their position on a stock when the originally expected value of the trade has been recognized. Although price targets can help traders understand when to buy or sell a stock, traders can and should determine their own price targets for entering and exiting positions.

If You’re a Sophisticated Investor

For individual investors, the assumptions that underlie analysts’ price targets are not always obvious. Investors should use analysts’ price targets and recommendations as just one part of their investment due diligence, which could include reviewing a company’s financials and regulatory filings, among other resources.

Despite the most careful analysis, we cannot know for certain the price at which a stock will trade in the future. Nevertheless, when a prominent analyst changes their price target, it can have a significant impact on the price of a security.

Price Targets Are Powerful Guesstimates

Accurately forecasting a security’s price movement is based on projection, probability, numerous tools, and lots of experience. However, even for the most seasoned professional, a price target is still a calculated guess. Some portfolio managers believe that price targets, along with research reports, function mainly as marketing tools for brokerages and investment banks to generate interest in a security that they’re underwriting.

How Are Price Targets Calculated?

Price targets try to predict what a given security will be worth at some point in the future. Analysts attempt to satisfy this basic question by projecting a security’s future price using a blend of fundamental data points and educated assumptions about the security’s future valuation.

Are Price Targets Accurate?

Despite the best efforts of analysts, a price target is a guess with the variance in analyst projections linked to their estimates of future performance. Studies have found that, historically, the overall accuracy rate is around 30% for price targets with 12-18 month horizons. However, price targets do have the ability to sway investor sentiment, especially if they come from credible analysts.

Where Are Price Targets Found?

Analysts generally publish their price targets in research reports on specific companies, along with their buy, sell, and hold recommendations for the company’s stock. Stock price targets are often quoted in the financial news media.

How to get «1y Target Est» and «Performance Outlook» From Yahoo Finance ?

But I can’t figure out how to get «1y Target Est» and «Performance Outlook» From Yahoo Finance, right now I can only get the whole html page and extract info out of it : https://finance.yahoo.com/quote/IBM?p=IBM

I know there are Python packages to extra info out of the html, but I want to stick with Java, so I used https://financequotes-api.com/ but it can’t do it.

[1] What I’m looking for is something like the following :

Which I hope to get : 144.12

[2] Also something like this :

Which I hope to get : Down

Target Prices: The Key to Sound Investing

Andrew Bloomenthal has 20+ years of editorial experience as a financial journalist and as a financial services marketing writer.

Updated May 04, 2023
Fact checked by
Fact checked by Yarilet Perez

Yarilet Perez is an experienced multimedia journalist and fact-checker with a Master of Science in Journalism. She has worked in multiple cities covering breaking news, politics, education, and more. Her expertise is in personal finance and investing, and real estate.

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When it comes to evaluating stocks, target prices can be even more useful than the ratings of equity analysts. Strictly defined, a target price is an estimate of a stock’s future price, based on earnings forecasts and assumed valuation multiples. This article investigates what people should know about target prices, and how these reports can lead to wiser investment decisions.

Key Takeaways

  • A target price is an estimate of the future price of a stock. Target prices are based on earnings forecasts and assumed valuation multiples.
  • Target prices can be used to evaluate stocks and may be even more useful than an equity analyst’s rating.
  • While opinion-based ratings have limited value, target prices can help investors evaluate the potential risk/reward profile of the stock.

Why Target Prices Are Better Than Ratings

First and foremost, ratings have limited value, because they are opinion based. While one analyst may rate a stock as a “sell,” another may recommend it as a “buy.” More importantly, a rating may not equally apply to every investor, because people have different investment goals and risk tolerance levels, which is why target prices can be so essential to rounding out research.

It should be stated that the quality of a target pricing model is only as strong as the factual analysis behind it. While a shoddy thesis behind a target price can lead investors astray, thoughtfully constructed target pricing models can legitimately help investors evaluate the potential risk/reward profile of the stock.

4 Keys to Target Price

Investors should consider the following four factors in determining the legitimacy of a target price:

Earnings per Share (EPS): A keystone element of the target price, the report should contain a detailed earnings forecast model, including a full income statement with a discussion of operating cash flows for the time frame covered by the target price. A quarterly forecast for the next 12 months is useful for tracking the accuracy of the analysis and evaluating whether or not the company is performing as anticipated.

EPS Forecast Assumptions: The report should also discuss the assumptions used to make the forecast, so readers can evaluate their credibility. Reports that lack detailed earnings models and lists of assumptions should automatically raise red flags. It is important that the assumptions are reasonable.

For example, if a micro-cap company’s sales grew just 1% to 2% over the last two years, it would be illogical to project a double-digit growth over the following two years, unless there is a significant event, such as a new product rollout or patent approval. These game-changers should be incorporated into detailed earnings models so readers can adjust their assumptions accordingly.

Price targets are not necessarily always accurate so an investor should do their own research before investing based on the targets of other analysts.

Valuation Multiples Used to Calculate the Target Price: Target prices rely heavily on valuation multiples, such as price/earnings (P/E), price/book (P/B), and price/sales (P/S). Each valuation multiple should appropriately apply to the stock in question.

For example, the market places more emphasis on P/E multiples for industrial companies, while placing greater importance on P/B numbers for banks. Furthermore, valuation models should rely on a host of different variables. A model based on just one multiple is like a one-legged stool—not sturdy or reliable.

Assumptions Used to Justify the Valuation Multiples Used: Whether they are used to support earnings forecasts or valuation targets, assumptions must always be reasonable. This can be determined by comparing assumptions to historical trends, relevant peer groups, and current economic expectations.

If a stock has consistently traded below its peer-group average, but the forecast projects the multiples to be larger than its peers, it’s vital to investigate why this stock is suddenly expected to outperform. While there may be legitimate reasons behind such projections, such as FDA approval of a new drug, only investors with high-risk tolerance levels invest in such a story.

What to Do When a Stock Hits the Target Price?

When a stock you own hits your target price for growth, reevaluate the stock at the time and determine if it still has the potential to grow further. If your analysis indicates that it will continue to grow, then hold on to it until it reaches your new target price, and if not, then cash out and take your profit.

How Do People Make Money When Stock Prices Fall?

The main way to make money when stock prices fall is to short-sell. The process involves an investor borrowing a stock, then selling the stock, then buying the stock later when the price has fallen, and returning it to the original lender. Stock selling is complex and not recommended for new investors.

At What Percentage Should You Sell Your Stock?

The percentage growth at which you should sell your stock will vary depending on multiple factors, such as risk tolerance and the stock’s growth potential. It can be recommended to cash out of the majority of your position when the growth hits between 20% and 25%.

The Bottom Line

Target prices can go a long way in helping investors decide if a stock warrants an investment. A good target price considers a set of four factors. Without all of them, investors should dismiss the target price report outright, as it could be a pump-and-dump marketing ploy.

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