Investing in stock markets without analyzing is akin to running on the highway blindfolded. Fundamental analysis is the analyzing tool for the investor who considers the intrinsic value of the share by evaluating the economic and financial conditions of the company over the past years. Fundamental analysis is preferred by long-term investors as it requires detailed analysis of the financial statements of the company. It is widely used by the investors with the belief that the value of the share will increase with the growth of the company as a result benefitting the investor in the long run.
Fundamental Analysis focuses mainly on the financial statements to evaluate the company’s past history and foresee the future aspects. You need not be a qualified professional to be a fundamental analyst, instead, all you need is a deep understanding of studying the annual reports of the interested company, daily access to news for the latest development of the company you are interested in, and in-depth of MS Excel tools and filter criteria.
Analysts use various tools to inspect the financial statements of the companies. There are various websites that provide comprehensive financial data and thoroughly standardized statistics.
· Fidelity.com is a powerful research tool to identify the companies that meet the investors’ price performance, financial stability, and technical perspectives. On reaching the website, you need to click on the ‘research’ tab at the top of the page where you can access a huge amount of information on the specific company’s shares, bonds, IPOS, and annuities. You can find vital information such as the current stock price, average daily volume and annual yield along with the latest news and research reports.
· Stockcharts.com provides a 1-month free trial service that plots daily and weekly sharp charts. Once logging in, it allows breaking all the charts into minute-by-minute details. Stock charts provide a wide variety of technical analysis tools, including tools for creating and customizing charts, analyzing markets, and finding securities worth investing in. You can customize your charts, save them to the account and can access them from any web-enabled service.
· in.tradingview.com is an advanced visualization platform. it provides updated tools and data to view basic price charts or complex spread symbols. this website offers a huge variety of charts to enable the investors to view the market from different angles.
· screener.in is a widely used tool for Indian Stocks as it provides fundamental analysis of a company to study the fundamentals such as general info, financial charts, peers, analysis, annual and quality results, p & l statements, balance sheet and cash flows. They create financial reports that contain only vital information. It ensures simply display of the data for anyone to read and understand.
· Finviz.com is an important website useful for initial screening of the financial earnings and valuation. In order to find out the price/earning ratio, you can select a list of all the stocks above and below the ratio you choose and thereby find the attractive opportunities for investing. This website is very user-friendly and flexible and provides various classifications to chose such as average volume, ownership, insider transactions, long-term debt and so on and so forth.
Using the above-mentioned websites, the investors can get a detailed comparison of top competitors and industries. Fundamental research is the basis for investing and helps in laying a better foundation for your investment decisions. It helps the investors to answer certain basic questions related to the company’s economic value such as ‘is the company’s revenue growing?’, ‘is it making profit?’, ‘what will be the financial condition of the company in the future?’ and other related basic questions.
Fundamental Analysis gives the investor confidence for a long-term investment by identifying the attributes of wealth-creating companies.
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