Fundamental analysis is a method of measuring a security’s intrinsic value by examining related economic and financial factors. Fundamental analysts study everything from the overall economy and industry conditions to the financial condition and management of companies. Earnings, expenses, assets, and liabilities are all important factors in fundamental analysis. This method is used to observe if the stock is undervalued or overvalued and to predict the future movements of the stock price based on macroeconomic factors, company-specific factors, and financial factors.
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About the author
Jenna Lofton, MBA is a stock trading and investment expert with over a decade of experience in the financial industry. She began her career as a financial advisor on Wall Street and now helps everyday investors make smarter financial decisions through StockHitter.com.
Her insights simplify complex financial topics into actionable strategies for beginners and seasoned traders alike.