Fundamental Analysis

Fundamental analysts study companies' financial strength, organization and management and formulate opinions about how well they believe the company will perform in the future. A company's balance sheet, income statement, amount of free cash flow and core earnings are some of the cornerstones of a fundamental analyst's research. This type of analysis also involves comparing a company's products and services to its competitive marketplace.

Fundamental analysts examine annual and quarterly reports, go to shareholder meetings, and speak with employees and management to help gather information about the company. Any upcoming events that will affect these earnings and expenses - such as mergers, acquisitions, new products and expansions - are all analyzed carefully.