The entire point of a stock analysis report is to give a value estimate of the future share price based on research and data accumulated in the analysis of the company. Merely tossing a share price number out there is not doing a stock analysis report. The Best Stock Analysis Report should include the process that was used to determine the target price for the stock. Together with a target price, the risk factors that could prevent the stock from hitting the expected value should be included.
Organization above Content
The analysis report should be composed to best capture your attention and the major findings should be stated up front early on in the report. There should be an informational headline with an overview of the investment prospects of the stock. After you’ve digested that, there should be a table with the vital data about the stock followed by three to five key points about the company and its investment prospects. The rest of the report and what will essentially compose the main portion of the report covers the in-depth analysis of the stock. All of this should be written in a clear and concise manner that is easy to understand and covers the main concepts and impressions about the company.
Several Levels of Basic Analysis
A large part of the Best Stock Analysis Report will be the analysis of the company and the industry in whch it operates. What is called a top-down technique begins with the industry and covers the growth and profit prospects. Then the company itself is analyzed in regards to the overall sector. A bottom-up technique centers on the individual company with less focus on the business sector. Either type, however should cover how your stock is alike and different from its market peers. The basic analysis will be heavy on the data, such as profit margins, sales revenues, historic and projected growth rates.
Focus On Investors
The stock report can be made to stand out by slanting the analysis toward certain kinds of investors. For example: growth stocks, dividend growth, turnaround plays and high-yield stocks. If the person writing the reports knows the stock fits best into one of these categories, then they may opt to write their title and the report geared toward that certain type of investor.
If you reside in India the stock report might also recommend that you Open a DEMAT Account. DEMAT is the abbreviation for “Dematerialized”, and it refers to a deposit made at an Indian financial institution that can be used for investing in shares of stock and other financial assets. Securities are held electronically in a DEMAT Account, so physical paper certificates are unnecessary.