![]() ![]() Technical analysis is an alternative to fundamental analysis that is focused purely on a stock’s past price movement. The lower a stock’s P/E ratio, the more attractive it may be to value investors. One popular fundamental analysis metric is price-to-earnings ratio, which is calculated by dividing a stock’s share price by its EPS. Stock charts typically include data on a company’s underlying business metrics, commonly referred to as a company’s “fundamentals.” Investors use metrics like revenue, earnings per share (EPS) and free cash flow for fundamental analysis of a stock.įundamental analysis involves analyzing a stock by comparing its business fundamentals to its stock price and attempting to identify value. Fundamental Analysis vs Technical Analysis Investors often watch for big spikes in trading volume, as they tend to coincide with insider or institutional buying, important news or a change in a stock’s trend or pattern. Volume represents how much demand there is for a particular stock. The bar graph at the bottom of a stock chart tracks trading volume, which measures the number of shares of stock that are bought and sold in a given time period. By analyzing how a stock’s price has changed over time, investors can identify trends and patterns that inform their strategy. It is not possible to invest directly in an index.A stock chart’s y-axis tracks prices and its x-axis tracks time periods-from minutes and hours to months and years. Indexes are unmanaged, statistical composites and their returns do not include payment of any sales charges or fees an investor would pay to purchase the securities they represent. Market-weighted means that component stocks are weighted according to the total value of their outstanding shares. The S&P 500 represents about 80% of the total market value of all stocks on the New York Stock Exchange. Standard & Poor's 500 (S&P 500) Index is an unmanaged market-weighted index of 500 of the nation's largest stocks from a broad variety of industries. Three of the 68 industries do not have companies represented in the S&P 500 Index therefore, performance is not available for Marine, Transportation and Infrastructure, and Water Utilities. There are currently 10 sectors and 68 industries. ![]() Revenues are a significant factor in defining principal business activity however, earnings analysis and market perception are also important criteria for classification. A company is assigned to a single GICS industry according to the definition of its principal business activity as determined by Standard & Poor's and MSCI. S&P uses GICS to determine the market segment to which a company is assigned. GICS is an industry classification system developed by Standard & Poor's in collaboration with Morgan Stanley Capital International (MSCI). Chart Performance figures may vary slightly from 1 Year % Change due to different timeframes used in chart calculations. Last % change is the nominal change in the price of the index from the previous trading day's close expressed as a percentage as of the index value at the time noted in the Date & Time field. Sectors & Industries Performance is represented by the S&P 500 GICS® (Global Industry Classification Standard) indices. ![]()
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