How do we identify high performing stocks using our stock trading skills? There is no unified evaluation standard for high-performance stocks. Generally speaking, there are several important opinions:

(1) Annual after tax profit per share is above 0.50 yuan;

(2) The annual return on equity is above 20%;

(3) The price to earnings ratio is below 20 times.

These various scales have their own principles, but they may seem a bit thin. To observe the performance of a listed company, it is necessary to comprehensively consider its various environmental factors. In addition to the above points, the following aspects should also be observed:

(1) The financial status of the company. The financial status of a company is important in terms of resource allocation, debt repayment ability, dividend ability, and other aspects.

(2) The operational status of the company. A company with good performance often has excellent product quality, a large market share, and a high trade reputation.

(3) The management level of the company. A company with good performance must have a high-level guidance team, a scientific and rigorous work style, and management measures.

(4) Return to shareholders. A company with good performance always provides shareholders with generous returns every year.

Good performance indicates high returns provided to shareholders, poor performance indicates low returns, and losses indicate that investors not only do not receive returns, but also have to use their capital to repay debts. Therefore, high performing stocks are certainly welcomed by the market. But some people may say that high performing stocks have high costs and high capital, while low performing stocks have low costs and low capital. Once there is an increase in performance, there is a lot of room for the stock price to rise. This statement is very reasonable. Buying stocks means buying the future. If the performance of underperforming stocks can improve, it certainly means that the stock price will rise and investors will make profits. But in most business hours, the level of future performance is not as expected. It is difficult for investors to make a decisive decision on whether a listed company's performance level will change. At this time, compared with underperforming stocks, high performing stocks have a stronger safety net, especially in a market that tends to be ambiguous. High performing stocks are more indicative of their heroic nature.