Comprehensive Stock Analysis Assignment

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Business Finance

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You will be responsible for employing the three disciplines we learned in picking a stock to arrive at your one stock buy recommendation. You will use the following three steps:

  • For the Quantitative Analysis, use FINVIZ (or some other screening software) screening software to screen for stocks based on some criteria that make economic and/or investment sense (e.g. screen for stocks that are attractively valued (low P/E, P/S), have strong growth rates and are viewed positively by analysts (positive earnings surprise and positive earning revisions). You should have between five and ten stocks resulting from your screen. You may have to adjust your screening parameters to reduce the number of stocks to less than ten.
  • For the Fundamental Analysis, compare the stocks from your screen on the following basis:
  • For the Technical Analysis, analyze these remaining three stocks on the following factors:
  • Historical (profits, operating efficiency and growth)
  • Expectational (EPS estimate change, recommendation change and surprise)
  • Valuation (P/E, P/Sales, PEG)

This framework is the one we used for the Fundamental Analysis project. Choose the best three stocks from this analysis.

  • MACD
  • RSI
  • Bollinger Bands
  • OBV

Use a technical analysis software (i.e. StockWorm.com, BigCharts.com, JavaCharts.com, StockChart.com) to analyze the stocks. Choose the best stock from the three that offers the best short term, technical analysis. This will be the stock you will recommend to your portfolio manager to buy.

You will hand-in a three page, type written paper that summarizes each section of the analysis above. You can have other attachments for your charts. For the quantitative analysis, list the factors you used for the screen and why you used them. For the fundamental analysis, explain the choice of the top three stocks either in bullets, a matrix or several short paragraphs or combination of these three. For the technical analysis, explain your choice for top stock again using bullets, a matrix and/or several short paragraphs.

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Comprehensive Stock Analysis Assignment You will be responsible for employing the three disciplines we learned in picking a stock to arrive at your one stock buy recommendation. You will use the following three steps: 1. For the Quantitative Analysis, use FINVIZ (or some other screening software) screening software to screen for stocks based on some criteria that make economic and/or investment sense (e.g. screen for stocks that are attractively valued (low P/E, P/S), have strong growth rates and are viewed positively by analysts (positive earnings surprise and positive earning revisions). You should have between five and ten stocks resulting from your screen. You may have to adjust your screening parameters to reduce the number of stocks to less than ten. 2. For the Fundamental Analysis, compare the stocks from your screen on the following basis: a. Historical (profits, operating efficiency and growth) b. Expectational (EPS estimate change, recommendation change and surprise) c. Valuation (P/E, P/Sales, PEG) This framework is the one we used for the Fundamental Analysis project. Choose the best three stocks from this analysis. 3. For the Technical Analysis, analyze these remaining three stocks on the following factors: a. MACD b. RSI c. Bollinger Bands d. OBV Use a technical analysis software (i.e. StockWorm.com, BigCharts.com, JavaCharts.com, StockChart.com) to analyze the stocks. Choose the best stock from the three that offers the best short term, technical analysis. This will be the stock you will recommend to your portfolio manager to buy. You will hand-in a three page, type written paper that summarizes each section of the analysis above. You can have other attachments for your charts. For the quantitative analysis, list the factors you used for the screen and why you used them. For the fundamental analysis, explain the choice of the top three stocks either in bullets, a matrix or several short paragraphs or combination of these three. For the technical analysis, explain your choice for top stock again using bullets, a matrix and/or several short paragraphs.
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Explanation & Answer

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Running head: Comprehensive stock analysis

Comprehensive stock analysis
Name
Instructor
Institutional Affiliation
Date

2

Comprehensive stock analysis
Quantitative analysis

The quantitative stock analysis is critical in making the investment decision. Attractively
valued stocks and growing stocks are used for screening purpose. The two factors are considered
key in making an investment decision on any of a company’s stock. For instance, a correctly
valued stock would compel and investor to make an informed investment decision whether to
buy, hold or sell. In such a case price-earnings ratio (P/E) and the price-sell ratio (P/S) are relied
upon to making an informed judgment as to whether the stocks are attractively valued or not.
Another factor to consider in quantitative analysis is the growth of the stocks. PEG ratio may be
used (price/earnings to growth ratio) to determine the price of a given stock and its earnings
generated per share considering company’s anticipated growth rate. P/E ratio is higher for
entities that have higher growth rates.

AAPL AMZN COST FB GOOG JNJ KO

P/E

15.88

P/S

3.47

PEG 1.20

343.59

3.97

10.60

30.06

0.63

2.56

21.36

10.40

0.80

57.24

6.33

2.39

4.47

3.04

23.66

36.99

5.44

4.96

Fundamental analysis

Fundamentally analysis helps in evaluating stocks so as to help measure its intrinsic value
by among others examining related economic, financial as well as the qualitative and quantitative
factors. Apple’s shares are considerably less expensive than Google’s (reorganized itself as a
subsidiary of Alphabet), so valuation-wise, Apple is the better bargain. However, comparing

3

Comprehensive stock analysis

Google’s growth with Apple�...


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