Fundamental Research looks at a company’s financial statements, future plans and expected company as well as industry performance to form an opinion about the company’s performance. It is expected that stock performance will follow company performance. So a fundamental call on the stock is given based on the expected real performance of the company. Fundamental Research looks at industry performance, company’s future capital expenditure plans, company management’s views, ratio analysis and peer group comparisons amongst a host of other parameters. Fundamental calls are for a longer term period, generally 1 year or more.
