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You got the interview, now land your stock pitch

Not sure where to start with your stock pitch? Here are our tips on how to prepare.

Directors pitch movie ideas, entrepreneurs pitch start-up ideas and sales people pitch products. In the case of someone working in Sales and Trading at a place like Barclays, that product could be a stock. In a stock pitch, you must educate someone on the relevant attributes of a stock so they can decide whether to invest money by buying shares in that stock.

The stock pitch is a common part of the selection process for many investment banks as it tests your ability to gather and analyze business information, organize material to make a convincing argument and communicate with clarity and conviction – all essential skills for someone who wants to work in Sales and Trading.

First pick your company

Pick a sector and a company that genuinely interest you, as your enthusiasm will help to make your presentation more engaging. However, it’s worth noting that in the best stock pitches, interviewers learn something from the applicant that they didn’t know before. You have a better chance of offering a new perspective if you pick a less well-known company rather than one of the obvious big names.

Questions to ask yourself

Make sure you’re clear on the basic facts of the company. Who are they? What do they do? How has the company been performing? What company-specific (or micro) factors drive their performance?

Be sure to look at the wider industry in which the company operates. Who are their competitors? What are they up to? Why has the company been overachieving or underachieving compared to the rest of the industry?

Lastly, think about the bigger picture and the impact of economic or political (macro) factors. How might global events (climate change, war, economic upheaval, etc.) affect the value of the stock? Looking at the history of your stock’s performance during critical events such as past recessions will help you here.

What’s in it for the investor?

When preparing a stock pitch, you’ll want to dig deep, but the investor doesn’t need to hear about everything you’ve learned. Focus on why they should invest – and why now? Be ready to answer questions about when they should sell. Is there anything that you think is often overlooked but investors should pay attention to?

Talk about money

Make sure you’re on top of the facts and figures. Don’t just quote numbers and expect to be believed: know how they were calculated.

What is your price target over what timeframe and what is your loss limit? In other words, what price or time is good to buy or sell? How much do you think the stock will go up? If it goes down, at what price would you cut your losses and sell?

Consider risk

It’s important to present risks that may affect the stock. No stock is immune from losing value, so the better you know the risks, the better your investors can prepare themselves. Think about what could cause the stock’s performance to miss your expectations. If the stock moves unfavorably, how long, and until what price, would you advise holding on to the stock for?

The secret of success?

Remember that a successful stock pitch shows why the stock you’re presenting is worth investing in.