Fundamental Analysis Articles

  1. Cash Flow Statement: Reviewing The Cash Flow From Operations

    A company's ability to consistently generate positive cash flows from its daily business operations is highly valued by investors. Operating cash flow can uncover a company's true profitability and provide insight to its financial health.
  2. Technical Vs. Fundamental Investing - Friends Or Foes?

    Making money in the stock market has been likened to gambling by some, but experienced investors who do their homework usually profit by doing market analysis. However, even experienced investors debate which type of analysis - fundamental or technical - provides higher returns.
  3. Reviewing Assets On The Balance Sheet

    A firm uses its assets to generate sales and bottom-line profits for shareholders. A healthy company will continually grow its assets, which stems from leftover profits that are reinvested back into the business.
  4. Introduction To Fundamentally Weighted Index Investing

    If you believe the market smiles on those who focus on value, growth or income, this vehicle may be for you.
  5. How To Analyze The Transportation Industry

    By gaining an awareness of the transportation firms and trends that affect these players, investors can gain an edge by analyzing the sector and looking to profit from understanding it.
  6. Financial Analysis: Solvency Vs. Liquidity Ratios

    Solvency and liquidity are equally important for a company's financial health. A number of financial ratios are used to measure a company’s liquidity and solvency, and an investor should use both sets to get the complete picture of a company’s financial position.
  7. An Introduction To Coverage Ratios

    Interest coverage ratios help determine a company's ability to pay down its debt.
  8. Investing In Healthcare Facilities

    Read on to learn about how to value heathcare sector stocks.
  9. Don't Let Stock Prices Fool You

    Find out why a stock with a six-figure share price can still be a good value.
  10. Oil And Gas Industry Primer

    Before jumping into this hot sector, learn how these companies make their money.
  11. Analyzing An Acquisition Announcement

    These deals can make or break investors' returns. Find out how to tell the difference.
  12. Yield Investing: Dividend, Earnings And FCF

    There are numerous ways to value investments, and many investors prefer a specific valuation method. Yield investing is one way to value a stock by comparing the current price to various factors. Yield by definition means to give way to or produce. There are many ways to measure yield - three common ones are dividend yield, earnings yield and free cash flow yield.
  13. How To Value An Insurance Company

    In the insurance space, accurate predictions of metrics such as ROE are important, and paying a low P/B can help put the odds in investors' favor.
  14. Introduction To STRIPS

    STRIPS provide an alternative form of bond for fixed-income investors who need definite cash flows at specific times. Read the article to find out how.
  15. Equity Valuation: The Comparables Approach

    The main purpose of equity valuation is to estimate a value for a firm or security. There are three primary equity valuation models: the discounted cash flow (DCF), cost and comparable approaches. The comparable model is a relative valuation approach and is explained in more detail below.
  16. Understanding Profit Metrics: Gross, Operating and Net Profits

    Rather than relying solely on net profit figures to evaluate a company's performance, seasoned investors will often look at gross profit and operating profit as well.
  17. What Type Of Trader Are You?

    There are different ways stock traders attempt to profit from market movements. Which of the strategies do you use?
  18. Mergers And Acquisitions: Understanding Takeovers

    In the dramatic world of M&As, battleground terms meld with bizarre metaphors to form the language of the game.
  19. Interpreting A Company's IPO Prospectus Report

    Learn to decipher the secret language of the IPO prospectus report - it can tell you a lot about a company's future.
  20. Consumer Spending As A Market Indicator

    What people buy and where they shop can provide valuable information about the economy.
  21. Depreciation: Straight-Line Vs. Double-Declining Methods

    Appreciate the different methods used to describe how book value is "used up".
  22. Invest Like Buffett: Building A Baby Berkshire

    Get a piece of Warren Buffett's profit by using Form 13F to coattail his picks.
  23. Differences Between Forward P/E And Trailing P/E

    The most common types of price to earnings ratios are forward P/E and trailing P/E. Find out how they differ and the advantages and drawbacks of each.
  24. The Basics Of A Financial Analysis Report

    Running financial analysis on a company or industry is a key skill every investor must learn and understand how to undertake without which an ineffective financial report and investment recommendation ensues.
  25. How To Use Price-To-Sales Ratios To Value Stocks

    Take a look at how this effective ratio can be influenced by certain critical factors.
  26. Breaking Down The Fed Model

    Learn what pundits mean when they say that stocks are undervalued according to the Fed model.
  27. Everything Investors Need To Know About Earnings

    We go over the concepts behind the excitement over the most important figure in the stock market.
  28. Finding Undiscovered Stocks

    Wall Street tends to focus on large cap stocks, leaving other stocks under-followed and undervalued.
  29. Tips For Controlling Investment Losses

    A profit/loss plan helps investors recognize mistakes and invest logically, rather than emotionally.
  30. How To Find P/E And PEG Ratios

    If these numbers have you in the dark, these easy calculations should help light the way.
  31. How To Make A Winning Long-Term Stock Pick

    Discover the key elements of a good long-term investment and how to find them.
  32. Venturing Into Early-Stage Growth Stocks

    Picking these potential winners is all about sizing up risk. We show you how.
  33. Writing Down Goodwill

    Goodwill represents an acquisition amount over and above what the purchased firm’s net assets are deemed to be valued at on the balance sheet.
  34. Do Your Investments Have Short-Term Health?

    If a company is strong enough to survive tough times, it is more likely to provide long-term value.
  35. Spotting Profitability With ROCE

    This straightforward ratio measures whether a company is efficient, money-making or neither.
  36. Finding Solid Buy-And-Hold Stocks

    Find out how to look at the big picture - even when the market's short-term outlook is less than rosy.
  37. Analyze Cash Flow The Easy Way

    Find out how to analyze the way a company spends its money to determine whether there will be any money left for investors.
  38. Analyzing Retail Stocks

    To analyze retail stocks, investors need to be aware of the most common metrics used. Find out what they are.
  39. Digging Into Book Value

    This calculation will serve up your portion of the shareholder pie.
  40. Securitizing Your Health With ACOs

    ACOs have the components required to securitize. Can your health become an instrument that can be traded?
  41. Evaluating Retained Earnings: What Gets Kept Counts

    A company's retained earnings matter. Be investment-savvy and learn how to analyze this often overlooked information.
  42. Useful Balance Sheet Metrics

    These metrics can help you better understand the information found on balance sheets.
  43. Understanding Pro-Forma Earnings

    These figures can either shed light on a company's performance or skew it. Find out why.
  44. DCF Valuation: The Stock Market Sanity Check

    Calculate whether the market is paying too much for a particular stock.
  45. Analyzing Operating Margins

    Find out how to put this important component of equity analysis to work for you.
  46. Evaluating A Statement Of Cash Flows

    The metrics for the Statement of Cash Flows is best viewed over time.
  47. 3 Industry-Impacting Innovations On The Horizon

    Here are some industry-impacting innovations that could potentially belong in the famed Carousel of Progress.
  48. The Importance Of Other Comprehensive Income

    Understanding and analyzing OCI greatly improves financial analysis, especially for financial companies.
  49. A Primer On Investing In The Tech Industry

    The tech sector can provide fantastic returns for investors with a little know-how in the field.
  50. Can Good News Be A Signal To Sell?

    Sometimes positive announcements can mean bad news for a stock. Find out why.
  51. How To Evaluate A Micro-Cap Company

    Learn how to think big by investing in smaller stocks.
  52. Trading Failed Breaks

    Learn how to capitalize on the predictable behavior of others during breakouts and breakdowns.
  53. 3 Great Business Battles

    Here are some U.S. companies that have historically competed with one another for market supremacy.
  54. The Advantages Of Investing In Aggressive Companies

    Often the most attractive companies are also a little fierce - learn how to spot healthy corporate aggression.
  55. What Are A Stock's "Fundamentals"?

    The investing world loves to talk about fundamentals, but do you know what it means?
  56. The Daily Routine Of A Swing Trader

    From pre-market to after hours, see what you need to do to capture gains quickly.
  57. Helium: An Uplifting Commodity

    Helium is a non-renewable resource in an industry dominated by an unusual infrastructure.
  58. What Is The Intrinsic Value Of A Stock?

    Intrinsic value reduces the subjective perception of a stock's value by analyzing its fundamentals.
  59. Financial Models You Can Create With Excel

    The relatively modest amount of time it takes to build these models can pay for itself by leading you to better investment decisions.
  60. What Dividends Say About Stock Health

    Dividend payments may reveal information about the future prospects of a company.
  61. Impairment Charges: The Good, The Bad And The Ugly

    Impairment charge is a term for writing off worthless goodwill, but you need to know what its potential impact is on EPS.
  62. Institutional Investors And Fundamentals: What's The Link?

    Big-money sponsorship might make a company look good, but it's not always a reliable gauge of stock quality.
  63. Why There Are Few Sell Ratings On Wall Street

    We outline reasons that may show why enforcing more sell ratings isn't guaranteed to increase Wall Street's objectivity.
  64. Great Expectations: Forecasting Sales Growth

    Predicting sales growth can be something of a black art, unless you ask the right questions.
  65. Using DCF In Biotech Valuation

    Valuing firms in this sector can seem like a black art, but there is a systematic way to pin a price on potential.
  66. The One-Time Expense Warning

    These income statement red flags may not spell a company's downfall. Learn why here.
  67. Looking Deeper Into Capital Allocation

    Discover how companies decide how to spend their cash in a variety of market conditions.
  68. Money Management Using The Kelly Criterion

    Not sure how to determine your equity allocations? Read about a system that can help.
  69. Using Pivot Points For Predictions

    Learn one of the most common methods of finding support and resistance levels.
  70. 6 Unlikely Rivals That Should Merge

    If these companies are looking for growth and cost-cutting, the best bet might be to look to their main competitors.
  71. Retracement Or Reversal: Know The Difference

    Learn to distinguish between a temporary price change and a long-term trend.
  72. The Evolution Of Video Rental Stocks

    Video rental customers have gone from using video stores to streaming selections available at home. Here's how it happened.
  73. How To Choose Stocks For Day Trading

    Discover some of the contributing factors in determining what stocks are best for day trading.
  74. Passing The Baton At Berkshire

    There are two possible candidates to be the next Warren Buffett. Find out who it could be.
  75. Can Samsung Compete With Apple's Retail Stores?

    This strategic move may just shoot Samsung to an uncatchable spot in the consumer technology sector.
  76. Introduction To Swing Charting

    Discover why traders use swing charts, how they construct them and how they use them.
  77. LinkedIn's First Quarter Results

    LinkedIn currently trades for $10 more than its IPO price. Find out if the rise is justified.
  78. The Appeal Of Company Spinoffs

    Companies are increasingly turning to spinoffs for a variety of reasons, including improving performance.
  79. Understanding Analyst Ratings

    Discover whether analyst recommendations are really worth listening to.
  80. Make Money Trading Earnings Announcements

    Here are two opinions to help you decide if trading earnings announcements will work for you.
  81. "Healthifying" The Fast Food Market

    With the fast food market feeling the pressure to offer healthier choices, the industry is being revolutionized.
  82. A Silver Primer

    Find out what affects the price of silver, the types of investments that can be made and the methods in which it is traded.
  83. Channeling: Charting A Path To Success

    Find out how to build these charts showing buy, sell, stop-loss and take-profit points, and even estimate length of trade.
  84. Is Your Investment Manager Skilled Or Lucky?

    Being familiar with composite presentations will help you better assess the quality of an investment manager's performance.
  85. Why Facebook Needs More Cash

    Facebook intends to grow to a staff of 9,600 over the next few years, which will require a lot of capital.
  86. Neural Trading: Biological Keys To Profit

    Learn about neural networks, which is software designed to simulate the human brain in order to make better trading decisions.
  87. 7 Reasons Wendy's Surpassed Burger King

    The battle of the burger giants has recently taken a turn after nearly 40 years. Find out why.
  88. 5 Biggest Risks Faced By Oil And Gas Companies

    Before investing in gas and oil stocks, consider such factors as political and geological risks.
  89. International Financial Reporting Standards: What You Need To Know

    Learn about the purpose of the IFRS, as well as its benefits, goals and fundamental difference from the U.S. GAAP.
  90. Investing In The Biotech Sector

    The biotech sector is more than just medical research. Read this before you invest.
  91. 5 Reasons Old Tech Is Soaring

    New names may be popular, but old tech is still the place to put long-term money. Find out why.
  92. 5 Tips On When To Buy Your Stock

    Here are some ideas to help you identify stocks that have a good chance at making you money.
  93. A Primer On Palladium

    This rare metal is being used in the industry more and more. See how you can get exposure.
  94. Is Stock Picking A Myth?

    Find out if mutual fund managers can successfully pick stocks or if you're better off with an index fund.
  95. How To Decode A Company's Earnings Reports

    Read between the lines to decipher a company's true financial condition.
  96. 5 Ways To Measure Mutual Fund Risk

    These statistical measurements highlight how to mitigate risk and increase rewards.
  97. Department Of Justice Bites At Apple

    The Department of Justice has warned Apple that it intends to pursue a suit alleging price-fixing.
  98. 5 Stock Market Metrics Explained

    Learn how to evaluate a company's performance using metrics such as ROE, EPS and P/E ratio.
  99. Momentum And The Relative Strength Index

    These two indicators can give the trader a better understanding of when to get in and out of an issue.
  100. ETF Tracking Errors: Is Your Fund Falling Short?

    Find out the size and causes of ETF tracking errors and which funds are at risk.
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