Investing Simple Logo
Get 1 Free Stock Worth Up To $200 From Robinhood!
Sign up with Robinhood, deposit any amount and get 1 Free Stock. It takes less than 3 minutes to sign up and claim your Free Stock Bonus.
Earn 5.00% APY with M1 High-Yield Savings Account
M1 Plus members can earn 5.00% APY on their deposits with no minimum balance required.
Webull free stock promotion
Get Up To 5 Free Stocks From Webull
Open a new Webull brokerage account today and deposit any amount of money to receive 5 free stocks. Webull offers commission free stock, ETF, option and crypto trading.
Written by Sam Pennington on June 25, 2023
FTC Disclosure: Some of the links on this site are affiliate links. Read our full disclaimer here.

How To Tell If A Company Stock Is Profitable Using Robinhood

When it comes to investing in stocks, one of the key factors investors consider is whether a company is profitable or not. Robinhood, the popular investment platform, provides users with tools and information to help them evaluate the profitability of companies.

In this article, we will explore how to determine a company's profitability using Robinhood's features and available data.

To assess the profitability of a company using Robinhood, follow these steps.

Best Free Stock Promotion

Robinhood LogoGet 1 Free Fractional Share Worth $5 To $200Download
Webull LogoGet Up To 12 Free Fractional SharesDownload
Moomoo LogoGet 5 Free Stocks When You Deposit $100+Download
Acorns LogoGet A $20 Bonus When You Invest $5+Download

1. Search for the Stock

Begin by searching for the stock of the company you are interested in within the Robinhood app. You can search by the company name, ticker symbol, or other identifying information by using the search feature found in the top right corner in the app.

2. Click on the Stock Details Page

Once you have located the stock, click on it to access the stock details page. This page provides comprehensive information about the company and its stock.

3. Scroll Down to Stats

On the stock details page, scroll down until you find the "Stats" section. This section contains key financial metrics and ratios that can help evaluate the company's performance.

4. Look for the P/E Ratio

Within the Stats section, locate the Price-to-Earnings (P/E) ratio. The P/E ratio compares the stock's price to the company's earnings per share (EPS) and is a commonly used measure of valuation.

5. Interpret the P/E Ratio

If the P/E ratio is a positive number, it indicates that the company is profitable or at least was profitable in the most recent quarter. A positive P/E ratio suggests that the company's earnings are greater than its share price, which is generally viewed as a positive sign.

6. Assess a Negative P/E Ratio

If the P/E ratio is a negative number, it suggests that the company is not currently profitable. Negative earnings can indicate losses or a lack of profitability in the most recent quarter.

While the P/E ratio can provide insights into a company's profitability, it's important to consider other factors and conduct further analysis to gain a comprehensive understanding of a company's financial health. Profitability can be influenced by various factors, including industry trends, market conditions, and company-specific dynamics.

Additionally, it's important to note that the P/E ratio is just one metric among many that investors use to evaluate companies. It's advisable to consider other financial ratios, such as the company's revenue growth, net income, and cash flow, along with qualitative factors like industry competition and management strategies.

In conclusion, Robinhood provides users with a convenient way to assess the profitability of companies. By analyzing the P/E ratio available in the Stats section of a stock's details page, investors can gain insights into whether a company is profitable or not. However, it's essential to consider the limitations of a single ratio and conduct comprehensive research to make informed investment decisions.

Don't forget to grab your free stock worth up to $200 from Robinhood today!

Article written by Sam Pennington
Sam is a personal finance writer. While in college, he dedicated his spare time to learning about personal finance, investing, and real estate. Sam currently works as a business analyst for one of the top food manufacturers in the world.

Read more

Power Your Investing

Choosing the right product and service is essential for your investing. Here are some of the tools and services to help your portfolio grow.
Robinhood provides an easy-to-use free trading platform for beginner investors. Robinhood has $0 account minimums. Get a free stock when you open an account below.
Try Robinhood
M1 Finance
M1 Finance offers a free investing platform where users can build portfolios of stocks and ETFs. Users can also choose from a variety of pre-built portfolios offered for free.
Try M1 Finance
Passively invest in private real estate deals with as little as $10. Fundrise allows you to own residential and commercial real estate across the U.S. starting at a 1% annual fee.
Try Fundrise
Copyright © 2018 – 2023 Investing Simple LLC. All Rights Reserved.
Investing Simple is a financial publisher that does not offer any personal financial advice or advocate the purchase or sale of any security or investment for any specific individual. Members should be aware that investment markets have inherent risks, and past performance does not assure future results. Investing Simple has advertising relationships with some of the offers listed on this website. The information on Investing Simple could be different from what you find when visiting a third-party website. All products are presented without warranty. For more information, please read our full disclaimer.
Website managed by Stallion Cognitive™

Get 1 Free Stock Worth Up To $200 From Robinhood!

Don't Miss This Opportunity!

Investing Simple readers can claim a free stock from Robinhood worth up to $200 when they open a brokerage account and deposit any amount.

For US Residents only. Investing Simple is affiliated with Robinhood, and we may earn a commission when you sign up for Robinhood.

linkedin facebook pinterest youtube rss twitter instagram facebook-blank rss-blank linkedin-blank pinterest youtube twitter instagram