If you’ve ever felt overwhelmed by the idea of analyzing a stock, you’re not alone. Reading financial statements, understanding valuation metrics, and decoding news events can feel like a full-time job. But what if you had a research assistant who could explain it all in plain language, instantly?
Enter ChatGPT. This AI-powered tool can guide you through stock analysis, answer your questions in real time, and even help you make sense of market jargon. All you need are the right prompts.
Here are 10 essential ChatGPT prompts that every beginner and curious investor should use to evaluate a stock like a pro.
🔢 Prompt 1: “What does [Company Name] do and how does it make money?”
Why it matters: Before investing, you need to understand the business. This prompt gives you a simple breakdown of the company’s operations, products, and revenue sources.
Example:
“What does Titan Company do and how does it make money?”
📈 Prompt 2: “Give me a snapshot of [Company Name]’s financial health with key metrics”
Why it matters: Knowing a company’s financial condition helps determine whether it’s fundamentally strong.
Example:
“Give me a snapshot of Infosys’ financial health including P/E, EPS, ROE, and debt-to-equity ratio.”
📆 Prompt 3: “What is the trend in revenue and profit for [Company Name] over the last 5 years?”
Why it matters: Steady growth is often a good sign. This prompt helps you track performance over time.
Example:
“What is the revenue and net profit trend for HDFC Bank over the last 5 years?”
📊 Prompt 4: “How much debt does [Company Name] have? Does it have enough cash to cover it?”
Why it matters: High debt levels can be risky. This prompt explores liquidity and solvency.
Example:
“Analyze the debt and cash position of Adani Green.”
⚖️ Prompt 5: “Is [Company Name] overvalued or undervalued based on P/E and PEG ratios?”
Why it matters: This prompt helps you understand if you’re paying too much for a stock.
Example:
“Is Hindustan Unilever overvalued or undervalued based on current valuation metrics?”
📄 Prompt 6: “What are analysts saying about [Company Name]?”
Why it matters: Analysts provide professional insights and future expectations.
Example:
“What is the analyst consensus on Bajaj Auto?”
⚡ Prompt 7: “What are the biggest risks facing [Company Name] right now?”
Why it matters: Every investment has risks. It’s important to be aware of them before buying.
Example:
“What are the main risks of investing in Zomato today?”
🌟 Prompt 8: “Does [Company Name] have a competitive advantage in its industry?”
Why it matters: Companies with strong moats tend to survive and thrive over the long term.
Example:
“Does Asian Paints have a durable competitive advantage?”
🏦 Prompt 9: “How has [Company Name]’s dividend payout changed over the years?”
Why it matters: For income-focused investors, this prompt helps assess the reliability of dividends.
Example:
“What is the dividend history of ITC over the last 5 years?”
🌐 Prompt 10: “Compare [Company A] and [Company B] on fundamentals and valuation”
Why it matters: Sometimes you’re choosing between two similar stocks. This prompt helps with side-by-side comparisons.
Example:
“Compare Infosys and TCS on financial metrics and valuation.”
Bonus Tip: Turn These Prompts Into a Habit
Try running these prompts every time you’re interested in a new stock. Create a custom checklist in Notion, Google Sheets, or a journal. Over time, you’ll build a strong analytical habit and make better decisions.
🌞 Conclusion: AI + Curiosity = Smarter Investing
You don’t have to be a financial wizard to analyze stocks. With ChatGPT and these 10 prompts, you can ask smart questions, get instant answers, and invest with more clarity.
So next time you’re scrolling through stock tips on social media, pause. Fire up ChatGPT, plug in a few of these prompts, and analyze the stock like a pro.