Course 2
Stock Analysis
Picking stocks doesn't have to be guesswork. Learn professional methodologies for evaluating a company's financial health and market position before you invest.
Fundamental Analysis
Evaluating a business based on its financial statements, competitive advantage, management team, and industry trends. The goal is to determine the company's intrinsic value. Metrics include P/E ratio, Revenue growth, and Debt-to-Equity.
Technical Analysis
Analyzing statistical trends gathered from trading activity, such as price movement and volume. Technical analysts believe past trading activity and price changes can be valuable indicators of the stock's future path.
Key Metrics to Watch
Price-to-Earnings (P/E) Ratio
Compares a company's current stock price to its per-share earnings. A high P/E could mean the stock is overvalued, or that investors expect high growth rates.
Moving Averages
A technical indicator calculating the average price of a stock over a specific period (like 50 or 200 days) to smooth out price data and identify trends.
Market Capitalization
The total dollar market value of a company's outstanding shares. It helps categorize companies into small-cap, mid-cap, and large-cap, each carrying different risk profiles.