There is no shortage of analysis for anyone interested in investing. A search for the term “stock market analysis” turned up 122 million hits on Google and well over 15 million hits each on Bing, and Yahoo. The majority of stock market analysis can be lumped into three broad groups: fundamental, technical, and sentimental. Here’s a close look at each.
The goal of fundamental analysis is to determine whether a company’s future value is accurately reflected in its current stock price. Fundamental analysis attempts to estimate the value of a particular stock based on a variety of factors, such as the current finances of the company and the prevailing economic environment. Fundamental analysis also may include speaking with a company’s management team and assessing how the company’s products are received in the marketplace.