icking winning stocks using financial ratios involves analyzing key numbers that reveal a company’s financial strength, profitability, and valuation. Investors commonly start with the Price-to-Earnings (P/E) ratio to judge whether a stock is overvalued or undervalued compared to its earnings, while the Return on Equity (ROE) helps measure how efficiently a company generates profits from shareholders’ capital. The Debt-to-Equity ratio indicates financial stability by showing how much debt a company uses relative to its equity, and profit margins reflect operational efficiency. By comparing these ratios with industry peers and historical averages, investors can identify fundamentally strong companies with growth potential and avoid financially weak or overvalued stocks, leading to more informed and confident investment decisions.