Evaluating common stocks involves analyzing various factors: - Financial Statements: Examining the company's [balance sheet](...), [income statement](...), and [cash flow statement](...) provides insight into its financial health. - Earnings Reports: Regularly reviewing the company's [earnings reports](...) helps assess its profitability and future prospects. - Price-Earnings Ratio (P/E Ratio): This metric helps determine if a stock is overvalued or undervalued compared to its earnings. - Industry Analysis: Understanding the company's industry and its position within the market can provide context to its performance and potential.