Fundamental Analysis Tools: Top 4

Aug 12, 2020 07:35 AM ET
Fundamental Analysis Tools: Top 4

Why You Need Fundamental Analysis

Fundamental analysis is one of the many factors that affect the price of a stock in the securities market. Technical analysis is not enough for traders to understand long term value. You need to concentrate on fundamentals that influence the price of a share in the share markets. 

Fundamental analysis is a method of examining the company’s financial data to arrive at its intrinsic value. To do this, you need to analyze several qualitative and quantitative factors that affect the stock. The fundamental analysis includes all the quantitative, qualitative, microeconomic, macroeconomic, and other financial and non-financial data to determine the fair value of the company. You can use it to identify if it is over- or undervalued. 

What Tools To Look For?

According to most equity specialists, the company earnings play a crucial role in equity investment analysis and subsequent performance. Active equity managers apply strategies that seek forecasts of future earnings and growth of profits. For example, firms can incorporate measures of earnings acceleration, revisions to consensus estimates, or the magnitude and rate that companies use to beat the consensus expectations into their qualitative or quantitative stock selection proves. 

Top 4 Tools for Fundamental Traders

FinViz

FinViz

FinViz is a strong stock screener that offers great tools for establishing a macro market view quickly. Despite the minor drawbacks it has, the biggest plus point of FinViz is that the vast majority of its functionality is free. 

FinViz offers a wide range of scanning functionality, like technical filters such as candlestick patterns and distance from moving averages, fundamental filters like insider ownership and EPS growth, and descriptive filters such as interest and analyst consensus.  

Fundamental Ratios Screener

The most important feature of FinViz is a screener. Most screeners do not have the features that the screeners of FinViz have. Here are some types of screeners on FinViz :

Descriptive

  • Earning Data

  • Target Price

  • IPO Date

Fundamental

  • Insider Ownership

  • Insider Transactions

  • Institutional Ownership

  • Institutional Transactions

Technicals 

  • Pattern

  • Candlestick 

MarketWatch

MarketWatch

Approximately nineteen million individuals visit MarketWatch monthly. These visitors come to the website due to its huge backbone of news from the Dow Jones & Co. news organization. MarketWatch offers exciting features like the MarketWatch News Viewer that enable users to click through web pages with news from various markets and geographies. The Economy tab provides financial information like guidance from the Federal Reserve.

Other features are:

  1. Investing – You can get the coverage on popular vehicles such as exchange-traded funds, mutual funds, bonds, options, futures, stocks, and commodities. The investing section is very comprehensive, although it also offers a great starting point for most investors. Moreover, in this section, MarketWatch also covers private offerings. 

  2. Markets – This section enables investors to choose the geographic market. It includes market commentary, trending stocks, movers and shakers, the all-important earning calendar, and other market data. There is also a unique feature, which is a listing of private issuers going to the public market.

  3. Company’s Financials  – One of the most useful features. It allows investors to get a five-year record of Income statements, Balance sheets, and Cash Flow. It makes it easy to navigate the company performance without the painstaking research in company reports.

SimplyWallStreet

SimplyWallStreet

Simply Wall Street is a great option for anyone who needs to analyze stock data. By turning the data into interactive visuals and infographics, it makes it easy for any level of an investor to access stock data. The information on any stock is valuable, and you can digest it easily within a few minutes. With their intuitive visualizations, Simply Wall Street solves the problem of people who find it overwhelming to dig deeply into data for any particular stock. 

Simply Wall Street is very easy, and you can do it within ten seconds only. You can use any device to log in to the platform. After logging in, you can explore and customize the platform. You may start by looking for any stock on any exchange in the search bar. The platform is very comprehensive due to the large part of the data offered by S&P Capital IQ. The data is brilliantly rich and provides a clear picture of the health of a company fast. 

Another great element on the user dashboard of the platform is the ability to find stocks by pre-set filters, including trending stocks, as well as the stocks with high growth potential and also those that are potentially undervalued. It is always better to check what other people are looking for and filter through stocks before you buy because you can get a better option this way. 

Other useful features on the homepage include the ability to build a custom portfolio of stocks that you can watch and monitor over time. Moreover, you can add any stock to your custom portfolio after searching it so you can keep an eye on it. 

Estimize

Estimize

Estimize is a financial tool for sourcing crowd data. It offers some of its features for free, and some are paid. Estimize aims to offer the most precise and representative estimates data set available. It crowdsources economic estimates and earnings from brokers, hedge funds, and amateur and independent analysts. By collecting estimates from the diverse community of individuals, Estimize then builds a highly accurate data set of real market expectations. 

Estimize applies the basic principles of fundamental analysis, along with research, into people’s behavior in public goods markets, from economists to financial earnings announcements. It sources forecasts from a vast range of contributors – brokerage, hedge fund, independent, amateur analysts, and students. In return for their contributions to specific estimates, they can access the pseudonymous estimates of their peers for that particular earnings report. Estimize contributors face low regulatory pressure, and it results in more timely estimates than the Street. 

To perform better in the securities market, make sure to choose the right financial analysis tools to make your job easier.


Best Forex Robots