Types of Stock Market Analysis

There is no shortage of analysis for anyone interested in investing. A search for the term “stock market analysis” turned up over one billion results on Google and well over 70 million on Yahoo.1 

At Covenant Wealth Strategies, we continue to seek out companies that we are proud to own on behalf of our clients and that we believe in their long-term economic potential. Our team closely analyzes and monitors multiple aspects of stock research - including both fundamental and technical tools - to make wise and educated investment choices on behalf of our clients. Here’s a closer look at each type of analysis.

Fundamental Analysis

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 company's 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 assessing how a company’s products are received in the marketplace.

Technical Analysis

Technical analysis evaluates recent trading movements and trends to attempt to determine what’s next for a company’s stock price. Technical analysis involves analyzing stock charts and trends to make an assessment of a company’s stock price and direction.

If you are interested in increasing your financial literacy and would like to discuss your financial planning or investment strategy needs, we welcome you to Contact Us to set up time to discuss further.  

Sources & Disclosures:

  1. Searches conducted January 7, 2021

This material is for general information only and is not intended to provide specific advice or recommendations for any individual. There is no assurance that the views or strategies discussed are suitable for all investors or will yield positive outcomes. Investing involves risks including possible loss of principal. Any economic forecasts set forth may not develop as predicted and are subject to change. The content is developed from sources believed to be providing accurate information. The information in this material is not intended as tax or legal advice. Please consult legal or tax professionals for specific information regarding your individual situation.