how to read a stock analytics report

How do you analyze a stock report?

A common method to analyzing a stock is studying its price-to-earnings ratio. You calculate the P/E ratio by dividing the stock's market value per share by its earnings per share. To determine the value of a stock, investors compare a stock's P/E ratio to those of its competitors and industry standards.

Where do you read analyst reports on stocks?

Databases with Analyst ReportsValue Line Investment Survey - Plus. Search a vast array of financial measures for over 6,000 stocks, 18,000 mutual funds, 200,000 options, and other securities. ... S&P Global NetAdvantage. ... D&B Hoovers. ... Morningstar Investment Research Center. ... Nexis Uni. ... Mergent Online.

How do you read and predict stock charts?

Key concepts when learning how to read a stock chartIdentify the trendline. This is that blue line you see every time you hear about a stock — it's either going up or down right? ... Look for lines of support and resistance. ... Know when dividends and stock splits occur. ... Understand historic trading volumes.

What should a stock analysis report include?

The report should include the reasoning or process you went through to produce your target price for the stock. Along with a target price, cover the risk factors that could prevent the stock from hitting the expected value.

How do you analyze a stock before buying?

10 Key Factors to Check Before Buying a StockTime Horizon: ... Investment Strategy: ... Check Fundamentals before buying a stock: ... Stock Performance compared to its peers: ... Shareholder Pattern: ... Mutual Funds Holding: ... Size of the Company: ... Dividend History:More items...•

How do you analyze stocks for beginners?

How to do Fundamental Analysis of Stocks:Understand the company. It is very important that you understand the company in which you intend to invest. ... Study the financial reports of the company. ... Check the debt. ... Find the company's competitors. ... Analyse the future prospects. ... Review all the aspects time to time.

How do you read technical analysis?

0:514:36Technical Analysis - How to Read Charts? - YouTubeYouTubeStart of suggested clipEnd of suggested clipLevel simply connect them together and there you go you have drawn a support line remember that you'MoreLevel simply connect them together and there you go you have drawn a support line remember that you'll need to have at least two bottoms touching the same line connect two or more peaks.

How do you predict the trend of a stock?

You simply plot the 200-day moving average on the price chart. When the price of the stock rises above the moving average line, it is a buy signal, and when the price falls below the moving average line, it is a sell signal. You can also look at the 50-day or the 10-day moving average. Trading is a game of probability.

What are the three indicators of the stock market?

Here are three publicly-available market indicators you can use:Put-Call Ratio: The prices in the derivatives market is closely tied to the prices in the equity market. ... VIX: The stock market is known for its volatility. ... DMAs: Sometimes, some news may cause the market to move drastically in a single day.

How do you know a stock is good?

Here are nine things to consider.Price. The first and most obvious thing to look at with a stock is the price. ... Revenue Growth. Share prices generally only go up if a company is growing. ... Earnings Per Share. ... Dividend and Dividend Yield. ... Market Capitalization. ... Historical Prices. ... Analyst Reports. ... The Industry.More items...

Overview

Johnson and Johnson is a diverse global healthcare company with approximately half of their revenue coming from outside the United States. Founded in 1886, the company has paid increasing dividends for 47 consecutive years and is therefore firmly among the dividend aristocrats. JNJ is further broken down into three main business segments:

Revenue, Earnings, and Cash Flow

Johnson and Johnson has seen steady growth for the last several decades. The economic crisis in 2008 and 2009 has slowed growth, but cash flow remains strong in 2009.

Dividends and Share Repurchases

Johnson and Johnson has been a solid dividend payer for decades. With a current dividend yield of 3.09%, JNJ presents one of the highest yields it has had in years. In addition, JNJ has been actively repurchasing shares for years now, averaging about $5 billion in net share repurchases per year.

Balance Sheet

JNJ is the pinnacle of stability. Their operations are diverse, and their balance sheet is superb. Current ratio is a healthy 1.8, and LT debt to equity is a very modest 0.16. JNJ is more conservative than its peers in terms of leverage.

Investing Thesis

In 2007, JNJ opened the Emerging Market Innovation Center, a nearly 100,000 square ft facility, in Shanghai to better address the concerns and needs of the world’s developing countries. In 2008, JNJ acquired Beijing Dabao Cosmetics company, and with it China’s number 1 brand of skin moisturizer.

Risks

Although JNJ is a very safe company in general, they do face profitability risks. Ongoing healthcare reform could potentially reduce their profit margins in the US. This is buffered by their international growth, which remains strong.

Conclusion and Valuation

Overall, I think JNJ is a solid pick for dividend growth right now. It’s a stable, incredibly diverse, growing company with a large international exposure, an above average dividend yield, and room to continue. In my opinion, it’s a good value as long as it remains below $69, which would give it an earnings multiple of 15.

Why should a report start with a description of the company?

A report should start with a description of the company in order to help investors understand the business, its industry, its motivation, and any edge it might have over its competitors. These factors can prove invaluable in helping to explain why a company might be a profitable investment or not.

What is the most important part of financial analysis?

The most important part of any financial analysis is to come to an independent value for the stock and compare this to the market price. There are three primary valuation techniques:

What is fundamental analysis?

A fundamental analysis, which can also be broken out into its own section, contains research on the firm’s financial statements, such as sales and profit growth trends, cash flow generation strength, debt levels and overall liquidity, and how this compares to the competition.

How to find the P/E ratio of a stock?

To find a stock’s P/E ratio, you divide its market value per share by its earnings per share. You’ll use this ratio to help you determine how valuable the stock is. Once you know the stock’s P/E, you can compare it to the stock’s competitors.

What is a stock terminal?

Stock terminals are computer systems that allow you to access real-time financial data. Many people refer to the Bloomberg terminal when talking about stock terminals. The Bloomberg terminal has been around since the 1980s and it has built up quite a reputation over time.

What is the benefit of enrolling in a stock terminal?

The benefit of enrolling in this is that it can give you advice as well as information about the stock market. If you decide to analyze stocks yourself or use a stock terminal, you are left to make your own conclusions about which stocks are valuable.

Does Morning Star have a stock screener?

You can use its research to compare investments to each other and see how the investment has performed over time. Morning Star also offers a stock and mutual fund screener that allows you to find investments by searching hundreds of key data points.

Is the stock market confusing?

The stock market can be a confusing place. There are a number of options you can choose from when it comes to determining which investments are right for you. You can use the ratios provided in this article to analyze stocks for yourself.

Fundamentals Of Stock Analysis

Stock analysis helps traders and investors assess the stock market situation in a way that helps them make maximum profit. Before investing in a stock, they need to do their due diligence and learn what makes a company unique and why they should invest in it.

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What is reading stock charts?

Reading stock charts, or stock quotes, is a crucial skill in being able to understand how a stock is performing, what is happening in the broader market and how that stock is projected to perform. Knowing the basics can help investors make better decisions and are a vital first step in getting into and understanding investing. TST Recommends.

What is stock chart?

A stock chart or table is a set of information on a particular company's stock that generally shows information about price changes, current trading price, historical highs and lows, dividends, trading volume and other company financial information.

What does it mean when a stock closes?

The close price is perhaps more significant than the open price for most stocks. The close is the price at which the stock stopped trading during normal trading hours (after-hours trading can impact the stock price as well). If a stock closes above the previous close, it is considered an upward movement for the stock (and will impact things like candlestick charts, which we'll get to later). Vice versa, if a stock's close price is below the previous day's close, the stock is showing a downward movement.

What are the lines of support and resistance on a stock chart?

Still, another important aspect to examine on a stock chart are lines of support and resistance. Whenever a stock trades up or down, it generally falls within what are called support and resistance lines. Essentially, the support line is a certain price that the stock generally doesn't drop beneath - it "supports" the stock upward and keeps it from trading below that price given market signals. Conversely, the resistance line is a certain price that the stock typically doesn't trade above - it "resists" the stock pushing through that top price.

What are the two axes on a stock chart?

Every stock chart has two axes - the price axis and the time axis. The horizontal (or bottom) axis shows the time period selected for the stock chart. This can generally be customized to show anything from a year time period (or even multiple years) to a day.

How to calculate market capitalization?

A company's market capitalization is calculated by multiplying the company's total number of shares outstanding (shares of stock the company has issued to the public) by the current share price of one share of stock.

How to find P/E ratio?

The P/E ratio is found by dividing the current stock price by the earnings per share for the past year (four quarters).

What does it mean when you look up a stock quote?

When you look up a stock quote, there a variety of numbers, prices and diagrams that will appear. Understanding what they all mean will help you make an informed decision when purchasing a stock.

What is stock chart?

stock charts come in a variety of formats and have a whole investing technique based around them. They all track pricing data, usually the OHLC (open, high, low close), but they can display this information in different styles (lines, bars, candlesticks), different date ranges (day, week, month, year, 5 years, 10 years) and other information like volume, moving averages and dozens of other indicators.

What does volume mean in stocks?

Volume. This indicates the number of shares that have traded hands today. Some stocks may trade millions of shares each day, and others only trade a few hundred or even zero (the higher the volume, the more liquid the stock is).

What is market cap?

Is the total dollar market value of all of a company's outstanding shares. Market cap is calculated by multiplying a company's shares outstanding by the current market price of one share. This figure determines the company's relative size.

What is Google Analytics acquisition report?

You can use the Google Analytics acquisition report to get a detailed breakdown of your traffic by source. So it provides you with an in-depth look at where your traffic is coming from. That means you can keep track of how your ads are driving traffic, which search consoles seem to work for you, which social platforms are the most profitable, and which campaigns are seeing success.

What is Google Analytics?

Google Analytics gives you a highly detailed look at your audience data so you can understand your site visitors a little better. You can use this report to understand visitor demographics, interests, geographic attributes (location, language), behavior, technology usage, mobile device usage, cross-device usage, and more.

Why is Google Analytics so confusing?

Google Analytics provides you with several reporting options, which can be a bit confusing because the names can be somewhat vague. So let’s take a closer look at how to read Google Analytics reports using these options.

What is behavior report?

This gives you a comprehensive breakdown of how people are interacting with your site content with metrics such as bounce rate, exit percentage, unique page views, and more. And you get to view this performance data for all pages, content drill down, landing pages, and exit pages.

What can you use conversion reports for?

After defining your goal, you can use the conversion reports to keep track of how well you’ve managed to reach it. For instance, you can see where the goal was completed, which pages led to the conversion, how sequential goals play out, and more.

Can Google Analytics show you everything?

Keep in mind that while Google Analytics can give you a comprehensive look at your site performance on a broader scale, it doesn’t always show you everything.

What should be included in a stock analysis report?

The report should include the reasoning or process you went through to produce your target price for the stock. Along with a target price, cover the risk factors that could prevent the stock from hitting the expected value.

Is throwing out a share price number sufficient?

Just throwing a share price number out will not be sufficient. The report should include the reasoning or process you went through to produce your target price for the stock. Along with a target price, cover the risk factors that could prevent the stock from hitting the expected value.

Company Overview

Investment Thesis

valuation

• The most important part of any financial analysis is to come to an independent value for the stock and compare this to the market price. There are three primary valuationtechniques: 1. The first and arguably most fundamental technique is to estimate a company’s future cash flows and discount them back to the future at an estimated discount rate. Th...

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Key Risks

Other Considerations

The Bottom Line