Stocks to buy: Use Altman Z-score to select solid stocks; here are 5 stocks with upside potential of up to 34%
![Stocks to buy: Use Altman Z-score to select solid stocks; here are 5 stocks with upside potential of up to 34% Stocks to buy: Use Altman Z-score to select solid stocks; here are 5 stocks with upside potential of up to 34%](https://img.etimg.com/thumb/height-450,width-600,imgsize-76879,msid-110033582/.jpg)
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.
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