Equity research analysis is a method of researching and examining the stocks or equities in the market. This can range from localized stock markets to the world markets as well. The analysis is done with the help of financial firms that have their own equity research team. There are various industries that need to be considered for such a research. However, there are two approaches to such an analysis: a specific approach and a generalized approach. The specific approach takes into account only a particular industry sector or company whereas the generalized approach looks at the market as a whole.
Sample Equity Research Analysis:
The following is an Equity research analysis of the JACKS and Traders Co.
Analysis by: T ‘n’ P Research Analyzers Ltd
Time period: January to March 2012
Date of Analysis: 3.4.2012
Objective: To gauge the performance of the stocks of JACKS and Traders and provide strategies to investors for future course of action.
All information has been provided as a summarized account and not as per share data.
- Total Revenue Generated from Jan to March 2012: $345 million.
- Operating Income: $936 million.
- Net income: $567 million.
- Diluted earning per share: $0.005 million.
Strategy to be implemented:
- Investors can either sell or reinvest as either ways will render profit. This is expected to last for remaining of 2012.
- There is potential for expansion and hence, potential investors are welcome to invest in JACKS and Traders Co.
It is advisable to cross check all the data provided here before making a final decision.