The question sounds simple. The answer usually isn't: Which stocks should I buy? Those who wade through stock market forums, YouTube comments, and analyst opinions often end up more confused than clear. But the question can definitely be answered. Just not with hype, but with a systematic approach.
This article shows you how to find suitable stocks. Not by blindly following, but by using transparent criteria. No gut feeling, but clear numbers.
Why most investors fail at this question
Imagine this: You hear on a podcast about a stock that's currently "skyrocketing." You Google it, find three articles with three different opinions, look at the chart, and buy. Two weeks later, the price is 15% lower.
Sound familiar? Then you're not alone.
The problem isn't a lack of interest. The problem is the lack of a method. Without clear criteria, decisions become emotional: euphoria during a rise, panic during a fall. In the long run, both cost more than any bad stock.
What's missing is a rating system. One that you understand and can consistently apply.
Evaluating stocks comes before buying them.
Before you ask yourself which stocks you should buy, another question arises: Is this stock even worth buying?
This may sound like a small thing, but it's the crucial step. Because anyone who buys first and then evaluates is working backwards.
A sound stock valuation analyzes the company behind the share price. It looks at profitability, stability, valuation level, and market behavior. Not at rumors, trends, or the feeling that now is the time to buy.
Our detailed article shows you what such an evaluation looks like in concrete terms and which 12 key figures help with it: Evaluate stocks with these 12 key figures.
You don't want to check every key figure yourself?
TransparentShare evaluates over 1,300 stocks worldwide daily using a transparent 12-key metric system. Currently, 57 stocks meet the criteria for a positive rating (as of August 27, 2026).
View all currently positively rated stocks
The most important criteria: What really matters
Knowing what to look for makes the selection process much easier. Here are the criteria that play a key role in a systematic evaluation:
Profit margin: Does the company generate real profits?
The profit margin shows whether revenue actually translates into profit. A company that sells a lot but earns little is on shaky ground. A high profit margin, on the other hand, indicates efficient management and a functioning business model. Sounds obvious, but surprisingly often it isn't.
Equity ratio: How solid is the foundation?
The higher the equity ratio, the more stable a company is. A high equity ratio means low debt. And low debt means the company remains operational even in difficult times. Those who operate on borrowed money have little room to maneuver in a crisis. Numbers you can actually understand.
P/E ratio: How expensive is the stock really?
The price-to-earnings ratio (P/E ratio) shows how many years it takes a company to generate profit equal to its own market capitalization. A low P/E ratio suggests a more favorable valuation. On its own, it doesn't tell the whole story. In combination with other metrics, it provides a clearer picture. Guidance, not hype.
Price performance compared to the index: What is the market doing?
How has the stock performed over the last 6 and 12 months compared to the index? A stock that consistently outperforms the market demonstrates relative strength. This isn't a coincidence, but often a sign that investors have more confidence in the company than in the average. Make data-driven decisions, not guesswork.
Expected profit growth: What's next?
Rising profit estimates for next year are a positive sign. They show that analysts expect better business performance. If these estimates have been revised upwards in recent weeks, that's further evidence that the trend is positive.
Reaction to quarterly figures: What does the market say?
How does the stock price react when a company releases its quarterly results? Strong positive reactions indicate that the market is receiving the results well. Negative reactions despite good figures, on the other hand, are a warning sign. The market sometimes knows more than it initially reveals.
The points system: Buy, hold, or sell?
Anyone who combines all the aforementioned criteria needs a clear decision rule. TransparentShare uses a transparent scoring system for this purpose. Each metric is rated with +1, 0, or -1. The sum of these scores yields the overall rating.
The logic behind it is simple:
- Buy recommendation for large companies such as DAX, S&P 500 or EURO STOXX 50: from +4 points
- Buy recommendation for small and medium-sized enterprises such as MDAX, SDAX, CDAX or SCALE: from +6 points
- Sales recommendation: below 0 points, regardless of company size
The traffic light system makes the classification visible at a glance: Green means potential purchase, yellow means observe, red means caution. Clearly understandable from A to Z.
Which stocks to buy: A look at practical applications
Theory is good. But what does it look like in practice?
Let's take an example: A stock has a high profit margin, a solid equity ratio, and an attractive P/E ratio. At the same time, it has outperformed the index over the past six months, earnings estimates have recently been revised upwards, and the share price has reacted positively to the latest quarterly results. The overall rating is +5 points.
This stock meets the criteria for a buy recommendation. Not because anyone has recommended it, but because the data supports it. Data-driven decisions, not guesswork.
TransparentShare users report that the system brought stocks to their attention that they had not previously considered:
„"The company takes its name seriously and makes the valuation of the shares very transparent for me as a layperson. Through TransparentShare, I became aware of shares that I had absolutely not had on my radar before."“
Torsten Krebs
„"TransparentShare eliminates greed by providing rational justification for stock recommendations. It brings inner peace and removes the emotional process of deciding when to buy or sell."“
Michael Gassmann
You can find more customer and expert opinions here: Customer and expert opinions
Common mistakes when selecting stocks
Three patterns repeatedly appear among private investors:
- Buy after the price rises: A stock that has already risen sharply appears attractive. However, the risk of buying in at too high a price is often highest in such cases.
- Making decisions based on opinions rather than data: Those who rely on forum posts or social media comments are adopting the opinions of others without their own basis.
- No sales plan: Those who don't know when to sell often hold on too long or sell too early out of panic. Clear selling signals help to remain emotionally calm.
The antidote to all three mistakes is the same: a system you understand and trust.
TransparentShare: Systematic valuation of over 1,300 stocks
TransparentShare automatically evaluates over 1,300 stocks daily from Germany, the USA, Europe, Asia, and international markets. This evaluation is based on 12 objective key figures, including profit margin, equity ratio, price-to-earnings ratio, share price performance relative to the index, expected earnings growth, and the reaction to quarterly results.
The valuation method combines proven strategies from leading stock market experts with our own experience and is continuously optimized. No black-box algorithm, no hidden interests. Investors see not only the result, but also how it was achieved.
The app automatically notifies you when a stock you hold receives a sell signal. This ensures you don't miss an optimal exit point.
Stock market expert Heiko Thieme, who has been active in the markets for over 50 years, uses TransparentShare for his own analyses and describes it as ""An absolute must for professionals and private investors"“. You can find more from Heiko Thieme about TransparentShare in this article..
Thomas Vittner, author and stock market expert, adds: „"Many large financial service providers could learn a thing or two from this."“
The app is regulated by BaFin, independent of banks and brokers, and available from €9.99 per month. A 14-day free trial is possible without a credit card or subscription.
Which stocks are currently positively valued?
TransparentShare evaluates over 1,300 stocks worldwide daily based on 12 clear key figures. Currently, they meet the criteria. 57 shares The criteria for a positive evaluation. The evaluation was conducted on August 27, 2026.
These include:
- 4 stocks from Germany
- 10 more stocks from Europe
- 20 stocks from the USA
- 24 stocks from Asia and other international markets
If you'd like to see which stocks are currently receiving particularly positive ratings, you can view the complete overview directly in TransparentShare. Transparent from A to Z, without gut feeling or hours of research.
Try it free for 14 days. No subscription. No payment details required. Start instantly.
View all 57 currently positively rated stocks
Those who aren't ready to commit to the app can start with the free weekly newsletter. Every Monday, it delivers three undervalued stocks that, despite buy recommendations, are still trading significantly below their yearly highs. These stocks aren't on most investors' radar.
Discover 3 underrated stocks with potential every week
You can also find more information on welche-aktie-kaufen.de.
FAQ: Frequently Asked Questions
Which stocks should beginners buy?
Beginners shouldn't buy stocks based on recommendations from forums or social media, but rather rely on objective key figures. Important entry points are a low P/E ratio, a solid equity ratio, and positive earnings growth. Tools like TransparentShare present this data in an easily understandable way, without requiring any prior knowledge.
What is the P/E ratio and why is it important when selecting stocks?
The price-to-earnings ratio, or P/E ratio, shows how many years it takes a company to generate its market capitalization in profit. A low P/E ratio indicates a more favorable valuation. It is one of the key metrics for assessing whether a stock is fairly or overvalued.
How do I find stocks that are not yet overpriced?
A helpful filter is the distance to the 52-week high. If the current price is at least 10% below it, this reduces the risk of entering the market at an overbought point. Combined with a positive overall rating from several key figures, this provides a solid basis for decision-making.
When should I sell a stock?
A clear sell signal occurs when a stock's overall rating falls below 0 points. This indicates that the key figures have deteriorated and the original justification for buying the stock no longer holds true. Those who know in advance when to sell make this decision rationally, not out of panic.
What distinguishes TransparentShare from traditional stock market apps?
TransparentShare automatically evaluates over 1,300 stocks daily using 12 objective key figures. Unlike many other platforms, its methodology is completely transparent: investors can see how each key figure is evaluated and why. No black box, no subjective opinions, no hidden interests.
