Monday, July 1, 2013

Critical part of fundamental analysis-Company Earnings

   Fundamental analysis include the general economic and market conditions that impact a stock,as well as the financial information about a company's activities and its financial successes and failures.Taking the time to analyze the fundamentals of a stock puts you one step ahead of the trading crowd.

  The first step you take in conducting fundamental analysis is selecting an industry or business sector that interests you for possible stock selection.Regardless how you start,you need to narrow down your list of companies you want to compare in similar sectors,so you can find the best opportunity.Using fundamental analysis,you can determine how a stock's price compares with those of similar companies based on earnings growth and other key factors including business condition.Earnings and earnings growth are key factors that is to be considered as a part of fundamental analysis.Whether a company is meeting its own projections and analysts expectations is the most important clue about how a company is doing and how the stock market will react to its periodic reports.If the company fails to meet expectation,the market will likely to punish the stock by driving the price down and vice versa.

  So keeping an eye on earnings report is the most important step you take to get an idea of how the company is performing and so you will know when to enter and exit the stock

Check this site for scheduled earnings report calender
 http://biz.yahoo.com/research/earncal/today.html

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