Fundamental Analysis

Categories: Strategies, Fundamental Analysis, Investing and Trading, Stocks,

Fundamental analysis is one of two primary methods for analyzing a stock's potential return. It involves assessing a corporation's financial history and current standing, including earnings, sales, and management. It also involves gauging the strength of the corporation's products or services in the marketplace.A fundamental analyst uses these details as well as the current state of the economy to assess whether the stock is likely to increase or decrease in value in the short- and long-term. He or she also decides whether its current price is an accurate reflection of its value.