- 1). Research companies in the baby industry. Consider those companies with a strong financial history that have a large amount of market share. Market share is the percentage of the baby market the company dominates. This company is typically the brand name most people think of when considering a certain product. For example, baby formula, baby lotion, baby food and baby strollers each have a dominant brand that provides each product. Start your research with these companies.
- 2). Read the annual reports, news clippings, management information and histories of the companies on your baby product list. In the event of a product recall, sales of a baby product can significantly decline as parents are likely to immediately respond. Make a note of those companies with stable growth, few operational changes and a history of few product recalls.
- 3). Review the stock price of the companies on your list. You can view stock quotes free at websites such as MSNmoney.com or Cnnmoney.com. Stock quotes typically come with price history over the last five years and price changes over the last year.
- 4). Purchase stock in companies in the baby industry in which stocks have done consistently well over the last five years. Consult an investment banker or purchase stocks online at Etrade.com or Sharebuilder.com, depending on your investment budget. Sharebuilder.com caters to beginner investors with small amounts of money to invest.
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