Time now for Eye on Your Money with Financial Advisor Bryce Matteson of the local Oppenheimer & Co, Inc. office and if you are thinking about buying stocks, you have some help available. Not only with your financial advisor but analysts who cover stocks and industries they represent. Basically there are two types of analysis: technical and fundamental.
Let talk about fundamental first. Fundamental analysis is the process of looking at a business at the basic or fundamental financial level. This type of analysis examines key ratios of a business to determine its financial health and gives you an idea of the value of the stock.
Many investors use fundamental analysis alone or in combination with other tools to evaluate stocks for investment purposes. The goal is to determine the current worth and, more importantly, how the market values the stock.
Fundamental analysts will look at many aspects of a particular stock, but the key to most is earnings - how much is the company making now, and how much is it going to make in the future.