Science,
Industry and Business Library
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Evaluating Companies
Evaluating Stock Performance
Understanding Stock Information
Using Analysts' Reports
Assessment
Evaluating
Companies
In today's markets the players actively evaluating companies are
industry
analysts. Their opinions are an important component of company
research.
How are companies evaluated?
Industry analysts evaluate companies on the basis of their financial
viability -- their stability and their potential for growth and
risk.
Analysts look at stocks
issued by hundreds of companies using such criteria as historical
performance, growth projections, and creditworthiness.
Who is doing the analysis?
There are, of course, numerous industry analysts -- every investment
house has its own cadre of analysts. You can find out exactly who
the analysts are by using such resources as Nelson's Directory
of Corporate Analysts, which names the in-house analysts for
various corporations and which companies they favor.
Two of the best-known firms for industry analysis are Standard
and Poor's (S&P) and Valueline.
S&P http://www.standardandpoors.com
analyzes companies from the point of view of current stability and
future strength.
Valueline http://www.valueline.com
analyzes companies in terms of risk and growth potential to provide
investment advice.
Both S&P and Valueline are established and well-respected entities,
and are in the business of providing reliable information and tools
which allow for individual and corporate investors to make informed
investment decisions. A good analyst will weigh investment risks,
both positive and negative.
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When it comes to stock reports on the Web and TV, "realtime" means a 20-minute delay. |
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Where can I find analysts' reports?
Analysts' reports are typically published by firms of industry analysts,
like S&P, and are available on a subscription basis. Reports
are also collected in databases
such as Investext. Individuals do not usually purchase subscriptions
to such resources, but many public libraries and business school
libraries offer access to them.
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