Use Online Analysis Tools
Target strong contenders and weed out also-rans with a quick fundamental analysis of any stock using these web tools.
There are hundreds of criteria you can consider when you invest in stocks, and the vast amount of information that’s available on the Web makes researching a stock an overwhelming effort. Fortunately, there are some tools that can help you perform an instant analysis to see whether a stock might fit your portfolio. While none of these tools substitutes for your own in-depth research, they can spark new ideas and point out potential hazards as you consider investing in a new company.
Research Wizards
A couple of web sites serve to focus your attention on the most important factors to consider before you invest. These research wizards take a step-by-step approach to fundamental analysis, presenting questions for you to answer as well as providing the relevant data you need to make a decision.
Quicken.com’s Stock Evaluator (http://www.quicken.com/investments/seceval) is one free tool, shown in Figure 4-40. From a stock page, click Stock Evaluator under Analysis in the left margin. The evaluator steps through a fairly thorough analysis across six areas, including growth trends, financial health, management performance, and market multiples. The Stock Evaluator also helps with industry comparisons and the calculation of a stock’s intrinsic value. In each section, data and graphs along with plain-English explanations help you to determine whether ...
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