fundamental analysis

Methods for Predicting Stock Market Behavior When it comes to the stock market, the holy grail for traders and investors alike is predicting its behavior—the ability to tell with some certainty what a stock or the overall market will do next. This endeavor employs numerous methods, each varying in complexity and effectiveness. Here are some …

Understanding the P/E Ratio and Its Role in Stock Valuation Investing in the stock market requires critical analysis of numerous data variables that could guide prospective investors in deciding which stocks to buy, hold, or sell. An easily intelligible metric that often comes into play during stock analysis is the Price-to-Earnings ratio (P/E ratio). Your …

Understanding the Dividend Discount Model in Stock Valuation Introduction The process of selecting a strong stock portfolio often hinges on being able to effectively value the shares you’re considering. One of the historical models applied to this purpose is the Dividend Discount Model (DDM). The DDM forms the foundation of equity valuation and implies that …

Understanding Blue-Chip Stocks and Their Investment Safety Defining Blue-Chip Stocks The term “blue-chip stocks” originates from poker gaming, where the blue chips hold the highest value. In the financial markets, blue-chip stocks are shares in large, industry-leading, and nationally recognized companies with a history of reliable and robust performance, even in adverse economic conditions. They …

The Role of Economic Moat in Fundamental Analysis An Introduction to Economic Moat Derived from the water-filled ditch that surrounds medieval castles for protection, the term “Economic Moat” in finance is credited to billionaire investor Warren Buffet. It describes a business’s ability to maintain competitive advantages over its rivals in order to protect its long-term …

Understanding the Importance of Earnings per Share (EPS) in Stock Selection Introduction to Earnings per Share (EPS) Earnings per Share (EPS) is an important financial metric used extensively in the realm of investment and stock selection. EPS serves as an indicator of a company’s profitability, reflecting the net income available to shareholders per outstanding share …