Investing in the stock market can be incredibly rewarding—but only if done with careful analysis and sound reasoning. The financial world is filled with data, trends, news, and noise. So how do you cut through the clutter and identify a stock truly worth your hard-earned money?
Welcome to the age of AI-powered investing. With tools like ChatGPT, you can now break down complex financial information into easy-to-understand insights, generate custom analysis based on your preferences, and even learn faster by asking the right questions.
In this blog post, we’ll explore 10 professional prompts you can use with ChatGPT to evaluate a stock before investing. Whether you’re a beginner or a seasoned investor, these prompts are designed to guide your research, enhance your understanding, and boost your confidence.
🔢 Prompt 1: “Give me a fundamental analysis of [Stock Name]”
Why this works: Fundamental analysis is the backbone of long-term investing. This prompt will help you understand the company’s financial health, revenue trends, profit margins, and valuation metrics.
Example:
“Give me a fundamental analysis of TCS. Include P/E ratio, EPS, debt-to-equity ratio, and revenue growth.”
What you’ll get: A breakdown of key numbers and an overview of how the company is performing financially.
🌐 Prompt 2: “Explain the business model of [Company Name] in simple terms”
Why this works: If you don’t understand how a company makes money, you shouldn’t invest in it. This prompt gives you a clear, jargon-free explanation.
Example:
“Explain the business model of Infosys in simple terms.”
What you’ll get: A human-friendly summary of what the company does, who its customers are, and how it earns profits.
⚖️ Prompt 3: “Compare [Stock A] with [Stock B] in terms of valuation and growth prospects”
Why this works: Often, you have to choose between two competing companies in the same sector. This prompt helps you evaluate which one offers a better investment opportunity.
Example:
“Compare HDFC Bank with ICICI Bank in terms of valuation, financials, and future growth.”
What you’ll get: A side-by-side comparison including P/E ratios, ROE, NPA levels, and analyst sentiment.
📊 Prompt 4: “Show me the recent price trend and technical indicators for [Stock Name]”
Why this works: Short- to medium-term investors often rely on technical analysis. This prompt pulls up useful indicators like RSI, MACD, and moving averages.
Example:
“Show me the recent price trend and technical indicators for Reliance Industries.”
What you’ll get: Trend charts (if supported), along with explanations of what the indicators suggest about future movement.
🌐 Prompt 5: “Summarize the recent news and developments affecting [Stock Name]”
Why this works: News can significantly impact stock prices. Mergers, product launches, lawsuits, or management changes can all swing the needle.
Example:
“Summarize the recent news and developments affecting Adani Enterprises.”
What you’ll get: A list of notable events and insights into how they might impact the stock.
⚡ Prompt 6: “What are the risks of investing in [Company Name]?”
Why this works: Every investment comes with risk. Knowing them upfront helps you make informed decisions.
Example:
“What are the risks of investing in Zomato?”
What you’ll get: Analysis of regulatory risks, competition, market volatility, or financial weaknesses.
🔍 Prompt 7: “List key financial metrics to evaluate before investing in any stock”
Why this works: Great for beginners or as a checklist. This prompt tells you exactly what numbers to look at before making a decision.
Example:
“List the top 10 financial metrics to check before buying a stock.”
What you’ll get: A list with definitions of metrics like P/E ratio, ROE, Debt/Equity, PEG ratio, and Free Cash Flow.
🏢 Prompt 8: “Is [Company Name] a good dividend stock? Analyze its dividend history and payout ratio”
Why this works: For income-focused investors, dividend stability is crucial. This prompt evaluates dividend track records.
Example:
“Is Hindustan Unilever a good dividend stock? Analyze its dividend history.”
What you’ll get: Dividend yield, payout ratio, and consistency over the past years.
💼 Prompt 9: “What do analysts and brokerage firms say about [Stock Name]?”
Why this works: Analyst ratings and price targets provide perspective on how professionals see the stock.
Example:
“What do analysts and brokerage firms say about Bajaj Finance?”
What you’ll get: Consensus ratings (Buy, Hold, Sell), target prices, and commentary.
⏳ Prompt 10: “Is it a good time to invest in [Sector Name]? What are the growth drivers and headwinds?”
Why this works: Sometimes it’s not about the stock but the whole sector. This prompt zooms out and gives a macro perspective.
Example:
“Is it a good time to invest in the Indian pharma sector?”
What you’ll get: Insights into sector trends, regulatory outlook, and key players.
Bonus Tip: Combine Prompts for a 360-Degree Analysis
You don’t have to stop at one prompt. Here’s how a real analysis might look:
- Start with: “Give me a fundamental analysis of Infosys.”
- Then: “Show me the recent news about Infosys.”
- Follow up: “What are the risks of investing in Infosys?”
- Finally: “Compare Infosys with Wipro in terms of future growth.”
This way, you get a full picture before investing.
📈 Conclusion: ChatGPT as Your Research Companion
Stock analysis doesn’t have to be intimidating. With the right prompts, you can turn ChatGPT into your personal research analyst. These 10 prompts are just the beginning. As you become more familiar with the process, you’ll start crafting your own variations tailored to your investment goals.
So next time you’re eyeing a stock, don’t just guess. Prompt it, research it, and invest smarter.
Ready to try? Drop your favorite stock in ChatGPT and use these prompts to get started today!