As a finance professor, it is important to understand how to evaluate stocks. This involves examining various factors such as earnings, sales, profit margins, and other financial metrics. By analyzing these components, we can gain insight into a company's financial performance and make informed investment decisions. A company's earnings reflect its profitability, while sales indicate its revenue. Profit margins, on the other hand, reveal the efficiency of a company's operations. By studying these metrics, we can better understand the financial health of a company and potentially identify promising investment opportunities.