research company stocks

How to Research Stocks

Researching stocks can give you a long-term advantage as an investor..

• Fundamental analysis identifies solid long-term investments trading for less than their true value.
• Key financial metrics, like P/E, PEG, and debt-to-EBITDA ratios, can help guide your investment choices.
• Considering competitive advantages and industry trends is crucial beyond just using numbers.
• Motley Fool Issues Rare “All In” Buy Alert

Analyzing stocks helps investors find the best investment opportunities. By using analytical methods when researching stocks, you can find stocks trading for a discount to their true value and be in a great position to capture future market-beating returns.

Stock analysis

Understanding the two types of stock analysis.

When it comes to analyzing stocks, there are two basic ways you can go: fundamental analysis and technical analysis.

1. Fundamental analysis

Fundamental analysis is based on the assumption that a stock price doesn't necessarily reflect the true value of the underlying business in all cases. This is the central tool value investors use to find the best investment opportunities.

Fundamental analysts use valuation metrics and other information to determine whether a stock is attractively priced. This type of analysis is designed for investors looking for excellent long-term returns.

2. Technical analysis

Technical analysis generally assumes that a stock's price reflects all available information and that prices generally move according to trends. In other words, by analyzing a stock's price history, you may be able to predict its future behavior. If you've ever seen someone trying to identify patterns in stock charts or discussing moving averages, that's a form of technical analysis.

One important distinction is that fundamental analysis is intended to find long-term investment opportunities. Technical analysis typically focuses on short-term price fluctuations.

The Motley Fool generally advocates fundamental analysis to seek the best long-term investment opportunities, not the best trades. Fundamental analysts believe investors can beat the market over time by focusing on great businesses trading at fair prices.

Crucial metrics

Learn some important investing metrics.

With that in mind, let's take a look at four of the most important and easily understood metrics every investor should have in their analytical toolkit to understand a company's financial statements :

Price-to-earnings (P/E) ratio

Companies report their profits to shareholders as earnings per share (EPS). The price-to-earnings ratio, or P/E ratio, is a company's share price divided by its annual per-share earnings.

For example, if a stock trades for $30 and the company's earnings were $2 per share over the past year, we'd say it traded for a P/E ratio of 15, or "15 times earnings." This is the most common valuation metric in fundamental analysis and is most useful for comparing companies in the same industry with similar growth prospects.

Price/earnings-to-growth (PEG) ratio

Different companies grow at different rates. The PEG ratio divides a stock's P/E ratio by the expected annualized earnings growth rate over the next few years to level the playing field. For example, a stock with a P/E ratio of 20 and 10% expected earnings growth over the next five years would have a PEG ratio of 2. The idea is that a fast-growing company can be "cheaper" than a slower-growing one.

Price-to-book (P/B) ratio

A company's book value is the net value of all of its assets. Think of book value as the amount of money a company would theoretically have if it shut down its business, sold everything it owned, and paid its debts. The price-to-book (P/B) ratio is a comparison of a company's stock price and its book value.

Debt-to-EBITDA ratio

As with your personal finances, a good way to gauge financial health is to look at a company's debt. The debt-to-EBITDA (earnings before interest, taxes, depreciation, and amortization) ratio is a good one for beginners to learn. You can find a company's total debts on its balance sheet and its EBITDA on its income statement. A high debt-to-EBITDA ratio could be a sign of a higher-risk investment.

Beyond numbers

Look beyond the numbers to analyze stocks.

This is perhaps the most important step in the analytical process. While everyone loves a good bargain, there's more to stock research and analysis than just looking at valuation metrics.

It is far more important to invest in a good business than a cheap stock. -- Warren Buffett

With that in mind, here are three other essential components of stock analysis that you should watch:

Durable competitive advantages

As long-term investors, we want to know that a company will be able to sustain (and hopefully increase) its market share over time. So, it's important to try to identify a durable competitive advantage -- also known as an economic moat -- in the company's business model when analyzing potential stocks. This can come in several forms, including:

• A great brand name
• Intellectual property, such as patents
• Cost advantages
• Distribution advantages

Great management

A business is only as strong as the executives calling the shots. Ideally, a company's CEO and other main executives will have successful and extensive industry experience and financial interests that align with shareholder interests. High insider ownership and a large proportion of stock-based incentive compensation are two things to consider.

Industry trends

Investors should focus on industries with favorable long-term growth prospects. Cloud computing , payments technology, e-commerce, and healthcare are examples of industries that are likely to grow significantly in the years ahead.

A basic example

A basic example of stock analysis.

Let's look at a hypothetical scenario. We'll say that I want to add a home-improvement stock to my portfolio and that I'm trying to decide between Home Depot ( HD 0.39% ) and Lowe's ( LOW 0.7% ). First, I'd take a look at some numbers. Here's how these two companies stack up in terms of some of the metrics we've discussed:

Here are the key takeaways from these figures: Lowe's appears to be the cheaper buy on just a P/E basis. Plus, Lowe's has a slightly higher projected growth rate, so its PEG ratio also shows it could be the cheaper stock. On the other hand, Lowe's has a significantly higher debt-to-EBITDA multiple, which could indicate that Lowe's isn't quite as financially strong.

I wouldn't say either company has a major competitive advantage over the other. Home Depot arguably has the better brand name and distribution network. However, its advantages aren't so significant that they would sway my investment decision, especially when Lowe's looks more attractive from a valuation perspective.

I'm a fan of both management teams, and the home improvement industry is one that should always be in demand, even if growth slows down and speeds up over time. Plus, both are relatively recession-resistant businesses.

If you think I'm picking a few metrics to focus on and basing my opinions on them, you're right. And that's the point: There's no one perfect way to research stocks, which is why different investors choose different stocks.

Related investing topics

What is rent-to-income ratio and why should landlords care.

Landlords often use this metric to see if potential tenants can afford the rent.

How to Calculate the Ratio of a Selling Price to an Asking Price

Calculating the ratio of selling to asking price is useful knowledge during any transaction that involves a negotiated price.

How to Pick a Stock for the First Time

Becoming a good stock-picker takes time and talent. We show you the way.

Price to Rent Ratios

Is it cheaper to buy or rent in a given area? This metric can help homeowners decide.

Solid analysis can help you make smart decisions

There's no one correct way to analyze stocks. The goal of stock analysis is to find companies you believe are good values and great long-term businesses. Not only does this help you find stocks likely to deliver strong returns, but using analytical methods like those described here can also help prevent you from making bad investments and losing money.

Invest Smarter with The Motley Fool

Join over half a million premium members receiving….

• New Stock Picks Each Month
• Detailed Analysis of Companies
• Model Portfolios
• Live Streaming During Market Hours
• And Much More

Motley Fool Investing Philosophy

• #1 Buy 25+ Companies
• #2 Hold Stocks for 5+ Years
• #3 Add New Savings Regularly
• #4 Hold Through Market Volatility
• #5 Let Winners Run
• #6 Target Long-Term Returns

Why do we invest this way? Learn More

Related Articles

Motley Fool Returns

Market-beating stocks from our award-winning analyst team.

Calculated by average return of all stock recommendations since inception of the Stock Advisor service in February of 2002. Returns as of 09/02/2024.

Discounted offers are only available to new members. Stock Advisor list price is $199 per year.

Calculated by Time-Weighted Return since 2002. Volatility profiles based on trailing-three-year calculations of the standard deviation of service investment returns.

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.

How To Research Stocks

Updated: Jul 30, 2024, 7:57pm

No matter if you’re a DIY investor or just someone who wants to know more about your investments, you don’t need to work on Wall Street to understand how to research stocks.

While researching stocks may sound complicated—and let’s be honest, there’s a lot of jargon—it’s a process that can be mastered with patience and some help from the following stock research guide.

A Few Things to Know about Researching Stocks

If you’re looking for a silver bullet, that one piece of information about a company that will tell you whether a stock is a winner or not, you’re going to be disappointed. That’s not the way this works.

Researching stocks requires gathering and analyzing multiple data points in order to find the equity investment that meets your needs. But you’re doing so to build a case for or against a stock, rather than a specific right answer to whether you should buy or sell.

“Equity research is an art, not a science,” said Asher Rogovy, a registered investment adviser ( RIA ) and chief investment officer of advisory firm Magnifina.

Every public company operates differently, and every stock investor has their own unique financial goals and interests. For Rogovy, that means researching stocks is as much about your particular investing strategy as it is about the market data you’re looking at.

To put that another way, stock research helps you build a story about a public company’s finances and business practices, and how those things might make the stock a good fit for you.

Start by Gathering Research Data on Stocks

The first step in building the story is to gather data. Here are easy-to-access resources that you can use to get started.

Equity Analyst Reports

Equity analysts are highly trained professionals who research stocks for a living. You should definitely be using their reports to your advantage.

If you have an online brokerage account , you can find analyst reports for most stocks on your brokerage platform. Navigate to an individual stock’s ticker page on the site, and see what sort of reports are available.

Equity analyst reports typically rate stocks as buy, sell or hold, based on their independent research. These terms are pretty straightforward, as the analyst is just telling you that a stock is worth buying (if you don’t already own it) or selling (if you already own it). Hold generally means the company should continue to perform in line with the market.

Some of the major analyst reports to follow are issued by Thomson Reuters, MarketEdge and Argus. You can also find consensus reports by companies like TipRanks , which gathers research from multiple analysts and gives a broader view of how the industry views a stock.

One of the best parts about a consensus report is that you can see opinions of multiple individual analysts, get a view of their overall ratings as analysts—yep, analysts are rated, too—and their track record for accuracy.

Take analyst ratings with a grain of salt, though, since they have a documented conflict of interest and research shows they can be too optimistic.

Dig into the Fundamentals

When researching stocks, the term “fundamentals” refers to data on a company’s financial performance. This includes things like revenue, profitability, assets and liabilities, and growth potential. Fundamental analysis helps you understand the financial health of a stock.

All publicly traded companies are required to file information about their finances with the U.S. Securities and Exchange Commission (SEC). You can find these annual (10-K) and quarterly earnings reports (10-Q) on every company’s investor relations page or by searching for a company’s records at the SEC’s EDGAR database online.

If you have an online brokerage account, you can also use the platform to find similar data. Log in and search by ticker to review company fundamentals like dividends and earnings per share (EPS), along with a stock’s historical and year-to-date performance. Some online brokerages also link to current news about the stock as well on the ticker page, making it easy to see news about a stock.

Online Stock Research Websites

There are plenty of online stock research websites that can get you plenty of information on the stock of your choice:

• Yahoo! Finance
• Seeking Alpha
• Motley Fool

While many of the sites listed above have paid subscription services, you can generally find the basics that you need to know about a company from the free side of the service.

Understand the Numbers

Once you’ve gathered the research on your stock, you can dig into the stock’s financials. A company’s financial health has everything to do with how analysts rate its stock and should play a role in any decisions you need to make about adding the stock to your portfolio.

Here are the key financial criteria you’re going to be looking for:

• P/E Ratio (price-to-earnings ratio). Also known as a stock’s earnings multiple or price multiple or, the P/E ratio is a number that measures a company’s current stock price (P) against its earnings per share (E). A P/E ratio is either forward-looking (uses estimated earnings) or backwards-looking (earnings that already occured).
• PEG Ratio (price-to-earnings-growth ratio). While it sounds like a mouthful, a company’s PEG ratio expresses a company’s P/E ratio divided by its annual earnings per share growth.
• P/B Ratio (price-to-book ratio). This ratio shows the relationship of a stock’s current price to the book value of the company. The book value is what a company could expect to get if it shut down tomorrow (yikes) and sold off all its assets.
• Return on Assets (ROA) and Return on Equity (ROE). ROA is how efficiently a company uses its assets to create revenue. ROE is all about how much profit a company creates for every dollar that shareholders invest.

These figures help you make comparisons between different companies, or between a company and a basket of similar companies. They give you a sense of how expensive a particular stock is trading compared to its peers, and how much it might grow.

Learn About The Company

After getting the numbers down, continue to research a stock by learning about the leaders who run the company. Even if you’re a fan of the folks who make your laptop or your favorite sneakers, there’s more about a company that impacts whether a stock should be an addition to your portfolio.

• Leadership. Who is leading the company? What’s their management philosophy? Where did they work prior to running this company and how did they help their previous company succeed?
• Culture. How does the company rank on best places to work lists and additional lists that speak to equity, diversity and inclusion like the Corporate Equality Index.
• ESG. How does the company prioritize environmental, sustainability and governance ( ESG ) initiatives in how it operates and generates revenue? Use MSCI’s tool for an ESG deep dive into thousands of companies.
• Trends. Does the company have a strategy to remain competitive? Does it have business in multiple verticals and profit centers? And speaking to recent events, if the world shuts down because of a global pandemic, does the company still have ways to serve its customers and generate revenue? Much of this information can be found in the analysts notes you’ve compiled.

While some investors would consider these to be “feel good” criteria, there’s no downside to companies with solid, proven leadership. Also, a 2019 study from McKinsey found that companies with executive teams that ranked in the top quartile for gender diversity were “25 percent more likely to have above-average profitability than companies in the fourth quartile—up from 21 percent in 2017 and 15 percent in 2014.”

Put It All In Context

With this sizable amount of information about a stock, you can start to assess whether it’s a fit for your investing goals. Here are a few scenarios that can help spark ideas to decide what sort of investing goals you want to pursue.

• Income investing. If a particular stock has buy ratings across the board, solid financials and sound leadership but cut its dividends to zero during the pandemic, you might consider a different well-rated stock in the same asset class with a long history of consistent dividends.
• Growth investing. If your favorite sneaker company consistently puts out new products but doesn’t show signs of long-term financial growth, you could consider this stock for a different part of your portfolio or skip it since it’s not going to meet the growth you need to meet your financial goals.
• Value investing. Value investors look for underpriced stocks. They believe the stock market overreacts to events that impact individual companies, and that short-term developments drive moves in stock prices that don’t always reflect a company’s long-term fundamentals.
• Socially responsible investing. If your research into an agricultural company demonstrates that they’re not proactive with watershed protection and don’t have plans to build out an overall EGS strategy, a well-rated stock with an excellent returns history might not make the cut.

You also don’t want to fall in love with a company just because they seem like an innovative force, said Robert R. Johnson, CFA and professor of finance at Heider College of Business at Creighton University. He cites the example of automakers and how they would go on to change transportation.

“In the early part of the last century, there were 2,000 auto companies,” he said. But as of the late 1990s, only three of those companies survived. “While auto had a tremendous impact on society, investors weren’t duly rewarded.”

The Bottom Line On How To Research Stocks

Researching stocks gives you a better feeling for a company’s financial health and whether it’s an attractive choice for your financial goals. Be sure to leverage the research that’s already out there because you don’t have to go it alone. Analysts are paid to research stocks for a living and their work shouldn’t be ignored, even if you don’t buy every word.

The biggest decision you’ll have to make after researching stocks is whether you want to continue to do all the heavy lifting, or instead, explore other strategies like exchange-traded funds ( ETFs ), mutual funds or robo-advisors that do the hard work of deciding what belongs in your portfolio at any given time. It truly comes down to a matter of preference, time and enthusiasm for the research process.

Featured Partner Offers

SoFi Automated Investing

On Sofi's Website

On Acorn's Secure Website

• Best Investment Apps
• Best Robo-Advisors
• Best Crypto Exchanges
• Best Crypto Staking Platforms
• Best Online Brokers
• Best Money Market Mutual Funds
• Best Investment Portfolio Management Apps
• Best Low-Risk Investments
• Best Fixed Income Investments
• What Is Investing?
• What Is A Brokerage Account?
• What Is A Bond?
• What Is the P/E Ratio?
• What Is Leverage?
• What Is Cryptocurrency?
• What Is Inflation & How Does It Work?
• What Is a Recession?
• What Is Forex Trading?
• How To Buy Stocks
• How To Invest In Stocks
• How To Buy Apple (AAPL) Stock
• How To Buy Tesla (TSLA) Stock
• How to Buy Bonds
• How To Invest In Real Estate
• How To Invest In Mutual Funds
• How To Calculate Dividend Yield
• How To Find a Financial Advisor Near You
• How To Choose A Financial Advisor
• How To Buy Gold
• Gold Price Today
• Silver Price Today
• Investment Calculator
• ROI Calculator
• Retirement Calculator
• Business Loan Calculator
• Cryptocurrency Tax Calculator
• Empower Review
• Acorns Review
• Betterment Review
• SoFi Automated Investing Review
• Wealthfront Review
• Masterworks Review
• Webull Review
• TD Ameritrade Review
• Robinhood Review
• Fidelity Review

10 Best Growth ETFs Of September 2024

10 Best Money Market Mutual Funds Of September 2024

10 Best Growth Stocks Of September 2024

7 Best Dividend ETFs Of September 2024

10 Best Cheap Stocks Of September 2024

5 Best S&P 500 Index Funds Of September 2024

E. Napoletano is a former registered financial advisor and award-winning author and journalist.

• Credit cards
• View all credit cards
• Banking guide
• Loans guide
• Insurance guide
• Personal finance
• View all personal finance
• Small business
• Small business guide
• View all taxes

You’re our first priority. Every time.

NerdWallet, Inc. is an independent publisher and comparison service, not an investment advisor. Its articles, interactive tools and other content are provided to you for free, as self-help tools and for informational purposes only. They are not intended to provide investment advice. NerdWallet does not and cannot guarantee the accuracy or applicability of any information in regard to your individual circumstances. Examples are hypothetical, and we encourage you to seek personalized advice from qualified professionals regarding specific investment issues. Our estimates are based on past market performance, and past performance is not a guarantee of future performance.

We believe everyone should be able to make financial decisions with confidence. And while our site doesn’t feature every company or financial product available on the market, we’re proud that the guidance we offer, the information we provide and the tools we create are objective, independent, straightforward — and free.

So how do we make money? Our partners compensate us. This may influence which products we review and write about (and where those products appear on the site), but it in no way affects our recommendations or advice, which are grounded in thousands of hours of research. Our partners cannot pay us to guarantee favorable reviews of their products or services. Here is a list of our partners .

Stock Research: How to Do Your Due Diligence in 5 Steps

Many, or all, of the products featured on this page are from our advertising partners who compensate us when you take certain actions on our website or click to take an action on their website. However, this does not influence our evaluations. Our opinions are our own. Here is a list of our partners and here's how we make money .

The investing information provided on this page is for educational purposes only. NerdWallet, Inc. does not offer advisory or brokerage services, nor does it recommend or advise investors to buy or sell particular stocks, securities or other investments.

Stock research involves investigating a company's financials, leadership team and competition to figure out if you want to invest.

When doing stock research, it's helpful to know terms such as revenue, earnings per share and price-earnings ratio.

A good stock research site can help you find lots of information quickly and may even offer stock analysis.

Stock research is a lot like shopping for a car. You can base a decision solely on technical specs, but it’s also important to consider how the ride feels on the road, the manufacturer’s reputation and whether the color of the interior will camouflage dog hair.

What is stock research?

Stock research is a method of analyzing stocks based on factors such as the company’s financials, leadership team and competition. Stock research helps investors evaluate a stock and decide whether it deserves a spot in their portfolio.

» Looking for a lesson in how to buy stocks instead? We have a full guide to that here .

5 steps to research stocks

One note before we dive in: Stocks are considered long-term investments because they carry quite a bit of risk: You need time to weather any ups and downs and benefit from long-term gains. That means investing in stocks is best for money you won't need in at least the next five years. (Elsewhere we outline better options for short-term savings .)

1. Get to know your research tools

If you're researching stocks, you'll want a good suite of research tools at your disposal. Many brokers offer research tools on their platforms (you'll need a brokerage account to buy stocks anyway). You can also use a free online stock screener . These aren't necessarily affiliated with any brokerage.

A good broker or stock screener will allow you to build and save screens, compare individual stocks against each other and to wider stock market benchmarks like the S&P 500, view many years of historical returns (ideally 10 years or more) and screen funds to see what their holdings include.

» Need a broker? Check out the best online brokers for stock trading

2. Gather your stock research materials

Start with a company you're interested in. Maybe you like the product it makes, or maybe you think it's going to take off because of wider market factors. Either way, start with reviewing the company's financials. This is called quantitative research, and it begins with pulling together a few documents that companies are required to file with the U.S. Securities and Exchange Commission (SEC):

Form 10-K: An annual report that includes key financial statements that have been independently audited. Here you can review a company’s balance sheet, its sources of income and how it handles its cash, and its revenues and expenses.

Form 10-Q: A quarterly update on operations and financial results.

Best stock research websites

The SEC’s Electronic Data Gathering, Analysis and Retrieval (EDGAR) website provides a searchable database of the forms named above. It’s a valuable resource for learning how to research stocks.

Short on time? You’ll find highlights from the above filings and important financial ratios on your brokerage firm ’s website or on major financial news websites. (If you don't have a brokerage account, here's how to open one .) This information will help you compare a company’s performance against other candidates for your investment dollars.

3. Narrow your focus

These financial reports contain a ton of numbers and it's easy to get bogged down. Zero in on the following line items to become familiar with the measurable inner workings of a company:

Revenue: This is the amount of money a company brought in during the specified period. It’s the first thing you’ll see on the income statement, which is why it’s often referred to as the “top line.” Sometimes revenue is broken down into “operating revenue” and “nonoperating revenue.” Operating revenue is most telling because it’s generated from the company’s core business. Nonoperating revenue often comes from one-time business activities, such as selling an asset.

Net income: This “bottom line” figure — so called because it’s listed at the end of the income statement — is the total amount of money a company has made after operating expenses, taxes and depreciation are subtracted from revenue. Revenue is the equivalent of your gross salary, and net income is comparable to what’s left over after you’ve paid taxes and living expenses.

Earnings and earnings per share (EPS). When you divide earnings by the number of shares available to trade, you get earnings per share. This number shows a company’s profitability on a per-share basis, which makes it easier to compare with other companies. When you see earnings per share followed by “(ttm)” that refers to the “trailing twelve months.”

Earnings is far from a perfect financial measurement because it doesn’t tell you how — or how efficiently — the company uses its capital. Some companies take those earnings and reinvest them in the business. Others pay them out to shareholders in the form of dividends.

Price-earnings ratio (P/E): Dividing a company’s current stock price by its earnings per share — usually over the last 12 months — gives you a company’s trailing P/E ratio . Dividing the stock price by forecasted earnings from Wall Street analysts gives you the forward P/E. This measure of a stock’s value tells you how much investors are willing to pay to receive $1 of the company’s current earnings.

Keep in mind that the P/E ratio is derived from the potentially flawed earnings per share calculation, and analyst estimates are notoriously focused on the short term. Therefore it’s not a reliable stand-alone metric.

Return on equity (ROE) and return on assets (ROA): Return on equity reveals, in percentage terms, how much profit a company generates with each dollar shareholders have invested. The equity is shareholder equity. Return on assets shows what percentage of its profits the company generates with each dollar of its assets. Each is derived from dividing a company’s annual net income by one of those measures. These percentages also tell you something about how efficient the company is at generating profits.

Here again, beware of the gotchas. A company can artificially boost return on equity by buying back shares to reduce the shareholder equity denominator. Similarly, taking on more debt — say, loans to increase inventory or finance property — increases the amount in assets used to calculate return on assets.

» Want to make sense of stock charts? Learn how to read stock charts and interpret data

4. Turn to qualitative stock research

If quantitative stock research reveals the black-and-white financials of a company’s story, qualitative stock research provides the technicolor details that give you a truer picture of its operations and prospects.

Warren Buffett famously said: “Buy into a company because you want to own it, not because you want the stock to go up.” That’s because when you buy stocks, you purchase a personal stake in a business.

Here are some questions to help you screen your potential business partners:

How does the company make money? Sometimes it’s obvious, such as a clothing retailer whose main business is selling clothes. Sometimes it’s not, such as a fast-food company that derives most of its revenue from selling franchises or an electronics firm that relies on providing consumer financing for growth. A good rule of thumb that’s served Buffett well: Invest in common-sense companies that you truly understand.

Does this company have a competitive advantage? Look for something about the business that makes it difficult to imitate, equal or eclipse. This could be its brand, business model, ability to innovate, research capabilities, patent ownership, operational excellence or superior distribution capabilities, to name a few. The harder it is for competitors to breach the company’s moat, the stronger the competitive advantage.

How good is the management team? A company is only as good as its leaders’ ability to plot a course and steer the enterprise. You can find out a lot about management by reading their words in the transcripts of company conference calls and annual reports. Also research the company’s board of directors, the people representing shareholders in the boardroom. Be wary of boards comprised mainly of company insiders. You want to see a healthy number of independent thinkers who can objectively assess management’s actions. You can also look at the level of diversity within the board and senior leadership.

What could go wrong ? We’re not talking about developments that might affect the company’s stock price in the short-term, but fundamental changes that affect a business’s ability to grow over many years. Identify potential red flags using “what if” scenarios: An important patent expires; the CEO’s successor starts taking the business in a different direction; a viable competitor emerges; new technology usurps the company’s product or service.

5. Put your stock research into context

As you can see, there are endless metrics and ratios investors can use to assess a company’s general financial health and calculate the intrinsic value of its stock. But looking solely at a company's revenue or income from a single year or the management team's most recent decisions paints an incomplete picture.

Before you buy any stock, you want to build a well-informed narrative about the company and what factors make it worthy of a long-term partnership. And to do that, context is key.

For long-term context, pull back the lens of your research to look at historical data. This will give you insight into the company's resilience during tough times, reactions to challenges, and ability to improve its performance and deliver shareholder value over time.

Then look at how the company fits into the big picture by comparing the numbers and key ratios above to industry averages and other companies in the same or similar business.

The bottom line on how to research stocks

Stock research is just a matter of gathering the right materials from the right websites, looking at some key numbers (quantitative stock research), asking some important questions (qualitative stock research) and looking at how a company compares to its industry peers — as well as how it compares to itself in years past.

Following these four steps can help you gain a deeper understanding of how to research stocks.

Colloquially, yes — "due diligence" or "DD" is a synonym for stock research.

Some professional investors, such as financial advisors, have a duty to act in their clients' best interest and are legally required take care, or exercise "due diligence," to not harm them financially — for example, by thoroughly researching an investment before buying it on behalf of a client.

Paid subscriptions and tools may streamline the research process, and may have more obscure types of stock data that aren't easy to find for free. But all of the types of data we've discussed in this article, such as SEC filings and valuation metrics, are available for free on websites such as EDGAR and Yahoo Finance .

Some professional investors, such as

financial advisors,

have a duty to act in their clients' best interest and are legally required take care, or exercise "due diligence," to not harm them financially — for example, by thoroughly researching an investment before buying it on behalf of a client.

Paid subscriptions and tools may streamline the research process, and may have more obscure types of stock data that aren't easy to find for free. But all of the types of data we've discussed in this article, such as SEC filings and valuation metrics, are available for free on websites such as

Yahoo Finance

More reading for active investors

Stock Market Outlook

Short Selling: 5 Steps to Shorting a Stock

» Who offers the best research? View our list of the best online brokers for beginners .

On a similar note...

Find a better broker

View NerdWallet's picks for the best brokers.

on Robinhood's website

Get matched with a trusted financial advisor for free with NerdWallet Advisors Match

on NerdWallet Advisors Match

• Credit Cards
• All Credit Cards
• Find the Credit Card for You
• Best Credit Cards
• Best Rewards Credit Cards
• Best Travel Credit Cards
• Best 0% APR Credit Cards
• Best Balance Transfer Credit Cards
• Best Cash Back Credit Cards
• Best Credit Card Sign-Up Bonuses
• Best Credit Cards to Build Credit
• Best Credit Cards for Online Shopping
• Find the Best Personal Loan for You
• Best Personal Loans
• Best Debt Consolidation Loans
• Best Loans to Refinance Credit Card Debt
• Best Loans with Fast Funding
• Best Small Personal Loans
• Best Large Personal Loans
• Best Personal Loans to Apply Online
• Best Student Loan Refinance
• Best Car Loans
• All Banking
• Find the Savings Account for You
• Best High Yield Savings Accounts
• Best Big Bank Savings Accounts
• Best Big Bank Checking Accounts
• Best No Fee Checking Accounts
• No Overdraft Fee Checking Accounts
• Best Checking Account Bonuses
• Best Money Market Accounts
• Best Credit Unions
• All Mortgages
• Best Mortgages
• Best Mortgages for Small Down Payment
• Best Mortgages for No Down Payment
• Best Mortgages for Average Credit Score
• Best Mortgages No Origination Fee
• Adjustable Rate Mortgages
• Affording a Mortgage
• All Insurance
• Best Life Insurance
• Best Life Insurance for Seniors
• Best Homeowners Insurance
• Best Renters Insurance
• Best Car Insurance
• Best Pet Insurance
• Best Boat Insurance
• Best Motorcycle Insurance
• Best Travel Insurance
• Event Ticket Insurance
• Small Business
• All Small Business
• Best Small Business Savings Accounts
• Best Small Business Checking Accounts
• Best Credit Cards for Small Business
• Best Small Business Loans
• Best Tax Software for Small Business
• Personal Finance
• All Personal Finance
• Best Budgeting Apps
• Best Expense Tracker Apps
• Best Money Transfer Apps
• Best Resale Apps and Sites
• Buy Now Pay Later (BNPL) Apps
• Best Debt Relief
• Credit Monitoring
• All Credit Monitoring
• Best Credit Monitoring Services
• Best Identity Theft Protection
• How to Boost Your Credit Score
• Best Credit Repair Companies
• Filing For Free
• Best Tax Software
• Best Tax Software for Small Businesses
• Tax Refunds
• Tax Brackets
• Taxes By State
• Tax Payment Plans
• Help for Low Credit Scores
• All Help for Low Credit Scores
• Best Credit Cards for Bad Credit
• Best Personal Loans for Bad Credit
• Best Debt Consolidation Loans for Bad Credit
• Personal Loans if You Don't Have Credit
• Best Credit Cards for Building Credit
• Personal Loans for 580 Credit Score Lower
• Personal Loans for 670 Credit Score or Lower
• Best Mortgages for Bad Credit
• Best Hardship Loans
• All Investing
• Best IRA Accounts
• Best Roth IRA Accounts
• Best Investing Apps
• Best Free Stock Trading Platforms
• Best Robo-Advisors
• Index Funds
• Mutual Funds
• Home & Kitchen
• Gift Guides
• Deals & Sales
• Sign up for the CNBC Select Newsletter
• Subscribe to CNBC PRO
• Privacy Policy
• Your Privacy Choices
• Terms Of Service
• CNBC Sitemap

Follow Select

Our top picks of timely offers from our partners

Featured Investing Products

What to look out for when researching stocks, before you start buying individual stocks, here's what to keep in mind..

Many money moves we make require doing our homework beforehand.

When saving up for a big purchase, research tells us it's important to know the difference between a traditional savings account versus a high-yield savings account . (Hint: the latter grows your money faster.)

Or, when signing up for a new travel credit card , we're naturally inclined to first shop around for the cards offering the best welcome bonus .

And when it comes to investing our money in the market, doing our research is just as crucial. You don't have to be an expert to start buying stocks, but the more you know going in, the better off your investing journey will be.

Here's what to keep in mind when researching stocks.

Start with yourself: What's your risk tolerance?

People ultimately buy stocks with one end-goal in mind: to build wealth. But it's important to note here that wealth is not guaranteed. Investing in individual stocks carries much more risk than, say, buying bonds or putting your money in index funds .

As you begin to research stocks, first know how much risk you can take on, or your risk tolerance . Are you able to comfortably stomach large financial losses? Financial experts typically recommend that you only invest money in individual stocks that you can afford to lose and, since investment returns are typically maximized over the long haul, only invest money that you won't need in the short term.

So the money you want to use for a down payment on a house in the next year or so, or for your kid's college education in the next 15, is best put in different types of accounts — think a high-yield savings and 529 account , respectively.

Look to put your money in low-cost index funds that offer automatic diversification, thus less risk. Two popular examples are the Vanguard S&P 500 ETF (VOO) and the Schwab U.S. Broad Market ETF (SCHB) .

You could also enlist a robo-advisor to do the work for you. Using your risk tolerance and time horizon, a robo-advisor platform like Betterment , Ellevest or SoFi Invest® will create a customized investment portfolio on your behalf.

Next, onto stocks: What does the company do?

Warren Buffett once said, "Never invest in a business you cannot understand."

This may seem obvious, but it's worth reminding yourself that you should understand what the company does, or the products it makes, before buying into it. After all, as an investor, owning its stock means owning a portion of that company.

Before betting your money on a software company specializing in data security and analytics, for example, make sure you understand how the cybersecurity world works.

How does the company make money?

Understanding the company's product is one thing, but understanding its finances paints a bigger picture that an investor needs to see. A company can be innovative, but does it make money that will, in turn, make you money? Take tech companies as an example. You may understand and like the product (and even use it yourself), but how do they monetize their huge platform of users?

To dive into a company's financials, look up its annual reports. Publicly-traded companies offer annual reports for free to the public so that current and future stockholders can view the company's performance and see what it has been up to.

You can usually find a company's annual report on its website, under an "investor relations" tab. Googling the company's name and "investor relations" is also a shortcut that will bring you to the right spot. On this webpage, you can also find information on the company's quarterly earnings calls, which anyone can tune into, as well as access analyst coverage of the company.

Has the company historically performed well?

A company's historical performance isn't a sole reason to buy (or not buy) its stock, but it can help lend some insight into what you can expect.

Websites Google Finance and Yahoo! Finance allow investors to research historical data, such as price charts that go back several decades. Users can also compare stocks' historical data with one another.

Note that past performance does not guarantee future success — just because a company has performed well in the past does not mean that it will continue to do so in the future.

Select reviewed over 12 online brokers that offer zero-commission trading and narrowed down the top six platforms for all sorts of investors: TD Ameritrade ; Ally Invest ; E*TRADE ; Vanguard ; Charles Schwab and Fidelity .

These six offer the widest range of investment options, user-friendly technology, quality customer support and educational resources. You can read more about our methodology on selecting the best $0 commission trading platforms below.

Bottom line

Before you jump into the complicated and risky world of stock investing, take the time to just get your feet wet by doing research beforehand.

Start by understanding your risk tolerance, and then move onto understanding what the publicly traded companies do, what products they offer, how they make money and how they've performed in the past. Experts generally suggest that individual stock picks make up only about 5% to 10% of your overall investment portfolio, with the remaining put in less risky investments.

Our methodology

To determine which $0 commission trading platform offers the best services for consumers, Select narrowed down offerings to a list of 10 initial platforms. We then analyzed and compared each one based on the following factors:

• Account minimums
• Account types
• Account and advisory fees
• Customer support
• Expense ratios of available investments
• Selection of investments
• Trading fees
• Available technology, including mobile platforms
• Educational tools and resources

After reviewing the above features, we based our recommendations on platforms offering the widest range of investment options, robust educational tools and resources, user-friendly technology, as well as the lowest fees and expense ratios. We also looked into each company's customer support structure, available avenues of communication and app reviews.

Note that with all trading platforms, there are no guarantees you'll earn a certain rate of return or current investment options will always be available. To determine the best approach for your specific investment goals, speaking with a reputable fiduciary investment advisor is recommended.

• American Express CDs review — good rates for your short-term goals, plus no fees Andreina Rodriguez
• The best 3-year CD rates for September 2024: Earn up to 4.75% APY Elizabeth Gravier
• The best jumbo CD rates for September 2024: Earn up to 5.30% APY Elizabeth Gravier

• Find a Branch
• Schwab Brokerage 800-435-4000
• Schwab Password Reset 800-780-2755
• Schwab Bank 888-403-9000
• Schwab Intelligent Portfolios® 855-694-5208
• Schwab Trading Services 888-245-6864
• Workplace Retirement Plans 800-724-7526

... More ways to contact Schwab

  Chat

• Schwab International
• Schwab Advisor Services™
• Schwab Intelligent Portfolios®
• Schwab Alliance
• Schwab Charitable™
• Retirement Plan Center
• Equity Awards Center®
• Learning Quest® 529
• Charles Schwab Investment Management (CSIM)
• Portfolio Management Services
• Open an Account

How to Research Stocks

Watch video: How to Research Stocks

Upbeat music plays throughout. On-screen text : Lou Mercer, CMT. Regional Investment Strategist  Narrator : So, you got a "hot" stock tip from a coworker, and they sound convincing—what should you do next? The short answer is, do your homework. As astute as your coworker may be, it's important to conduct due diligence on any investment before you put your hard-earned money at risk.

Due diligence, or DD, is all about research—making sure that you understand how a company operates so you can decide whether it's a good investment.

On-screen text: Due diligence. 1. Earnings. 2. Capital structure. 3. Management. 4. Expectations. Narrator : There are many aspects to due diligence. One part could include fundamental analysis because it delves into a company's ability to make money. At its core, it's the process of analyzing a company's financial statements, and studying other trends and data. That can help you determine whether a stock is fairly valued, undervalued, or overvalued by the market. Fundamental analysis is a large discipline as well, but you don't have to do it all by yourself. You can determine how much you're going to do and what you want to leave to the experts. There are many parts to due diligence, and in this video, we'll discuss four core ones: earnings, capital structure, management, and expectations.

On-screen text: Securities and Exchange Commission. SEC.

Animation: Text is replaced by a sample 10-Q and then a sample 10-K report.

Narrator : To get started, you need to know where to get the right information. Publicly traded companies are required by the Securities Exchange Commission, or SEC, to report financial information to the public in quarterly reports called 10-Qs and annual reports known as 10-Ks. Despite the name, it's not a race but instead a document filled with hundreds of pages of detailed financial information that can feel like a marathon to read. But there are tools to help analyze them if you know where to begin.

Some of the most important financial information for a business shows up in what is known as an income statement. There, you can see how much money, or revenue, is left over after accounting for a company's expenses like paying employees and utility bills. The end amount is known as net income, profit, or earnings, and is a crucial part of understanding a company's value. This is because the stock market is a place where people come to buy and sell the future earnings of a company.

Animation: A sample illustration of a bar graph showing rising revenues and earnings for each quarter over two years. Revenues and earnings are generally rising.

Narrator : A common rule of thumb is that earnings and revenues should be growing—quarter over quarter and year over year.  

But there's more you can do with that information, like compare how fast earnings are growing or determine how successful a company is at making a profit. But that would mean a lot of number crunching.

Animation: Four cards appear with different financial ratios. Net profit margin is net income over revenue. Debt to equity is total debt over total shareholders' equity. Price to earnings is market share price over earnings per share. Return on equity is net income over shareholders' equity.

Narrator: The crunching happens by taking data from these statements to calculate financial ratios. These ratios are standardized measurements that can help you analyze how well a company has performed, and what its future might look like.

Thankfully, the work has been done for you and you can get many of these tools and ratios for free in a more palatable way from most brokerages, like on the Research tab on schwab.com .

Animation: An equation is illustrated using a pile of cash labeled net income over a cash register labeled company's revenue. The peers and ratios comparison tool from Schwab.com replaces the ratio. It's set to overview. The net profit margin ratios for a company are highlighted. The "i" icon is selected and a graph of the net profit margin ratios for the company and some of its competitors appears.  

Narrator : One example of a ratio is net profit margin, which compares a company's revenue, or the total sales before expenses, to net income—the money it has left over after all the expenses are accounted for. Net profit margin is represented as a percentage, and a company with high margins is usually able to manage its expenses. This could mean it's good at turning a profit.  Profit margins, like other ratios, are great for determining if the company's growing compared to previous quarters and years. They're also good for comparing the company to its peers. Many investors identify top-tier companies by comparing ratios within an industry group.

Animation: The price-to-earnings ratio is illustrated with a stock certificate with a price tag over by a pile of cash labeled earnings per share. The price tag on the certificate changes to $20 and the pile of cash is changed to $1. The peers and ratios comparison appears again, it's still set to overview. The price/earnings line is highlighted.

Narrator : You can use the price-to-earnings ratio to see how much you're paying for a company's earnings and whether the stock is over or undervalued. It compares the price of a share of a company's stock to the company's earnings per share. If a stock is trading at $20 and its earnings per share are $1, then the stock has a P/E of 20. Some investors like to focus on companies with a lower ratio, believing it's a better value.

On-screen text: Due diligence. 1. Earnings. 2. Capital structure.

Narrator : Of course, there's other ways to examine revenue and earnings, but another core area of due diligence is a company's capital structure. It deals with how the business is funded.

Funding is done in a few ways, including selling equity by issuing stock shares or borrowing money in the form of things like bonds, mortgages, and other debt. If a company borrows money or incurs debt to make new products or otherwise expand, it can affect earnings. Debts have to be repaid, so they're essentially a claim on a company's future earnings.

A company with a good capital structure generally keeps its debt and other liabilities in check, while growing equity by retaining earning that can be reinvested into the company.

Animation: The peers and ratios comparison reappears on screen. It's now set to the Fundamentals tab. The long-term debt to equity line is highlighted.

Narrator : The debt-to-equity ratio is a good way to analyze how burdened a company might be by debt. A high ratio that is also higher than the company's peers could be a sign that the company has too much debt, which could be a drag on future earnings. However, debt levels vary from industry to industry, so peer comparisons are an important part of this analysis.

On-screen text: Due diligence. 1. Earnings. 2. Capital structure. 3. Management.

Narrator : I've talked about analyzing the books, but what about the people keeping the books? Management effectiveness analysis focuses on the ability of the management team to run the company, and it's one of a few soft data points that can be helpful when researching an investment.

Animation: The return on equity ratio is illustrated with a pile of cash labeled company's net income over shareholder's equity. The peers and ratios comparison reappears on screen. It's still set to the fundamentals tab. The return on equity line is highlighted.

Narrator : Successful management can seem abstract, but there's actually another ratio that can help grade how well management does at turning shareholder money into profits. It's called the return-on-equity ratio, and in this case, the higher the ratio, the better. It's calculated by dividing the company's net income by the average shareholder's equity. If a company has a higher number than its peers, investors might perceive that the managers are good at making money.

Animation: The peers and ratios comparison reappears on screen but is expanded to show the other ratings section. Analysts' ratings are highlighted in this area.

Narrator : It's not all about numbers, though. You can also find commentary directly from a company's management team on the company's investor relations website, in the 10-Qs and 10-Ks, and through analyst reports. Those statements can provide insights into what's on the minds of the people in charge, such as product promotions, growth expectations, or even potential dividends.

Animation: A sample 10-K report is on screen. The section titled macroeconomic conditions and related financial risks is highlighted. The page scrolls down to another section title business operations risks.

Narrator : Companies are also required to disclose any present risks they face, which may be an important factor in your investment decision. Risks can include lawsuits that could affect future earnings, or other trouble, like concerns that the company will struggle to market to certain customers.

That's a good reminder about the importance of diversifying the types of stocks you invest in. Investing in companies from several sectors and industry groups that don't usually rise or fall at the same time can help manage risk.

On-screen text: Due diligence. 1. Earnings. 2. Capital structure. 3. Management. 4. Expectations.

Narrator : While earnings growth, capital structure, and management are all important parts of conducting due diligence, much of what's being analyzed is in the past. Investors are most often concerned with the future prospects of a company. This is where the expertise of Wall Street analysts is helpful.

Animation : Three sample documents appear with different forward earnings estimates for three different companies.

Narrator : Banks and research firms around the world pay analysts to study many public companies. They publish frequent reports about their views, including what're known as forward earnings estimates that forecast what they think each company will earn for the upcoming quarter or year. They're educated guesses, but heavily researched ones that analysts make using their professional projections and models. Larger companies tend to attract more analysts, and the reports can be found through most brokerages, including Schwab.

Animation: The research tab on Schwab.com for a stock appears on screen. The screen scrolls down to the expected earnings section. Upcoming earnings and historical earnings are highlighted. Graphs for each estimate appear on screen with summaries and information related to earnings.

Narrator : Analyst estimates tend to be pretty big news when companies report earnings every three months. A company beating or falling short of estimates often result in big jumps or drops in the stock price.

Animation: A document titled analyst estimate appears. The earnings estimate is adjusted from $0.25 to $0.26 and then $0.27. A second company appears. Its estimate is reduced from $0.32 to $0.31 and then $0.30.

Narrator : However, outside of earnings announcements, positive adjustments to an analyst's estimates could be an indication the company may be doing better than expected. Negative estimate adjustments could be a bad sign for the company.

Animation: A bar graph titled cash flow growth appears on screen. The X axis is in years going out to 10. Each bar is made up of stacks of cash representing and estimate cash flow. The top portion of each stack of cash changes to red and a warning sign is placed over each bar. The red sections go away and the bars or stacks of cash shrink.

Narrator : Analysts estimates for the future growth of earnings can help investors calculate the intrinsic value, or fair market value, of a company. Anyone can calculate intrinsic value, but it's complicated. One method requires you to calculate earnings estimates for a company over a period of, say, five or 10 years, then discount those estimates based on how likely it is to happen.

Not only is the discounted future cash flows model complex, but it requires a few educated assumptions, so having analysts to rely on can be a big relief. However, if you are relying on someone else, even an analyst, make sure you understand their assumptions because they may have a different economic outlook, investing time frame, or bias, on the industry than you.

While a hot stock tip is exciting, without doing some due diligence, you could get burned. When you know what you're looking for and where to find it, it's a lot less overwhelming. Remember, the goal of due diligence isn't to make sure you know everything about a company. Instead, it's to help you evaluate the pros and cons so you can decide whether it belongs in your portfolio. On-screen text: Disclosure: On-screen text: [Schwab logo] Own your tomorrow ®

Schwab traders get in-depth research tools

More from charles schwab.

Buy, Hold, Sell: What Analyst Stock Ratings Mean

Beyond Nvidia: How the AI Picture Could Evolve for Investors

Using the Sortino Ratio to Gauge Downside Risk

Related topics.

The information provided here is for general informational purposes only and should not be considered an individualized recommendation or personalized investment advice. The investment strategies mentioned here may not be suitable for everyone. Each investor needs to review an investment strategy for his or her own particular situation before making any investment decision.

All expressions of opinion are subject to change without notice in reaction to shifting market conditions. Data contained herein from third-party providers is obtained from what are considered reliable sources. However, its accuracy, completeness, or reliability cannot be guaranteed.

Examples provided are for illustrative purposes only and not intended to be reflective of results you can expect to achieve.

Investing involves risk, including loss of principal.

Diversification and asset allocation strategies do not ensure a profit and cannot protect against losses in a declining market.

• Personal Finance Financial Advisors Credit Cards Taxes Retirement
• Insurance Auto Vision Life Dental Health Medicare Home Life Business Pet
• Investing Stocks How to Buy Stocks Best Stock Brokers How to Get Free Stocks How to Buy Stocks on an iPhone Best Stock Brokers for Beginners Options How to Trade Options How to Buy Put Options Best Brokers for Options Trading ETFs How Do ETFs Work? How to Invest in ETFs Best Brokers for ETFs Mutual Funds Futures How to Trade Futures Best Apps for Trading Futures Best Futures Trading Platforms IPOs Bonds How to Trade Bonds What Are Municipal Bonds? How to Buy Municipal Bonds Best Brokers for Bonds Index Funds Forex Best Forex Brokers Prop Trading Brokerage Reviews Webull Review Moomoo Review EdgeClear Review Robinhood Review NinjaTrader Review Interactive Brokers Review
• Alternative Investing Real Estate Startups Collectibles
• Mortgage Rates Calculator Reviews Purchase Refinance Self-Employed
• Cryptocurrency How to Get Crypto Free Bitcoin How to Buy Bitcoin How to Buy Bitcoin with a Credit Card Crypto Wallets Best Crypto to Invest In Ripple Price Prediction Stellar Price Prediction Shiba Inu Price Prediction Crypto Exchange Reviews Gemini Review Kraken Review Coinbase Review 3Commas Review

How to Research Stocks

Investing in the stock market has provided generations of people with a more attractive alternative to keeping extra funds in a savings account, buying certificates of deposit (CDs) or earning interest from holding fixed-income securities. 

Stock market returns have historically increased over time considerably beyond the rate of inflation, although some notable exceptions have occurred in recent memory like the 1987 Black Monday stock market crash, the 2008 financial crisis and the 2020 coronavirus pandemic, so profits are by no means guaranteed.

Knowledge is power in the world of trading and investing. If you educate yourself about the markets and stocks you plan on operating in and stay well-informed, you will probably make more profitable transactions. 

Above all, one of the most important things to remember when trading speculatively is to refrain from using anything other than risk capital, which is money you can easily afford to lose. Investors also generally aim to maximize returns while preserving the value of their initially invested capital, so taking excessive risks should generally be avoided when investing in the stock market. 

Successful investors and traders have typically developed excellent research skills they use to build their accounts and portfolios. Keep reading to find out which analysis techniques work best to generate trading and investment ideas and how to turn them into profits.     

• Review the Company's History

Check Analyst Ratings

• See All 12 Items

Stock research has many facets. Depending on your trading or investment style, you might choose to operate based on technical analysis or fundamental analysis. You can also use a combination of both market analysis methods, which is how most successful professionals research stocks. 

Technical analysis is largely based on market observables like volume, open interest and the price action that responds to the forces of supply and demand. Technical analysts typically spend time interpreting stock charts and stock indicators to find misvalued stocks or to time their trades in stocks that have recently shown a notable price move. 

In contrast, fundamental analysis focuses on factors like a company’s earnings in relation to its stock price or price-to-earnings (P/E) ratio compared to other companies in its sector. Other key fundamental observables for a company that can be analyzed include its revenue, net income and return on equity.

In addition to these traditional market analysis methods, stock traders and investors use a number of modern tools to select promising stocks. These tools include online stock screeners, industry research websites like Benzinga and professional online newsletters published by successful traders and investors.

The following research methods have traditionally been used by traders and investors to achieve excellent results. The more you know about your potential investments, the more confident you’ll be pulling the trigger on the stocks you’ve researched.

Review the Company’s History

A company’s history gives you a good idea of its future potential and the prospects of its stock. The main reason companies issue stock and sell shares to the public is to raise capital to expand. This allows the public to participate in the company’s success once its earnings increase.

The company’s history can be viewed technically by reviewing stock price charts and fundamentally by researching the 10-K and 10-Q forms that all publicly listed companies must file with the Securities and Exchange Commission (SEC). 

Form 10-K is an annual report that includes the company’s balance sheet and other key financial data. Form 10-Q is a quarterly report that gives researchers updated information on the company’s activities, operations and financial results for the quarter.

These reports often contain an overwhelming amount of information, so it’s best to select several key items to research such as: 

• Net income: Generally listed on the last page of the company’s income statement, net income represents a company’s bottom line earnings number. It consists of the total amount of money the company made after expenses, depreciation and taxes. 
• Revenue: Sometimes referred to as the top line because it generally appears at the top of the company’s income statement, revenue is often divided into operating revenue that comes from a company’s general business and nonoperating revenue that typically includes one-off business activities.
• Earnings per share (EPS): EPS is calculated by dividing the earnings amount by the number of shares outstanding. This number represents the amount of money the company made on a per-share basis.
• Return on equity (ROE): This number indicates the return in percentage terms of the company’s profit made off the money shareholders invested because “equity” means shareholder equity in this context. 
• Return on assets (ROA): This figure shows the percentage of profits generated by the dollar amount of the company’s assets.
• Stock price-to-earnings ratio (P/E ratio): This measures the company’s current share price relative to its EPS. For example, if a company’s stock trades at $30 per share and earns $3 per year, then its P/E ratio would be 10, meaning the stock trades at 10 times its yearly earnings. This metric gives investors a better idea of a company’s valuation and whether the company may be over or undervalued.

You can review a company’s history along with other financial data on Benzinga’s website, and you can do even more in-depth research on individual stocks using Benzinga Pro . Benzinga provides investors and traders important company information, stock charts and advanced stock indicators. An example stock analysis page appears in the image below. 

Another useful tool for fundamental stock research consists of the analyst consensus on the stocks you’re interested in. Benzinga provides an excellent resource for this valuable information by giving you the most important stock analyst metrics. These include:

• Upgrades, downgrades and initiations: You can see which companies’ stocks have been upgraded or downgraded and those where analysis has been initiated by major stock analysts.
• Upside/downside: This figure shows, in percentage terms, the amount analysts expect the stock to rise or fall.
• Analyst firm: Indicates which major market analyst, bank or brokerage has made the prediction for a stock’s future.
• Price target change: Shows the original price forecast and the change from the original forecast with a red range indicating a downgrade in the analyst’s price target and a green range indicating an upgrade. If no change is expected, the number appears in black.
• Rating change: Indicates whether the analyst has maintained, downgraded or upgraded their previous rating.
• Previous/current rating: Shows whether the analyst considers the stock a buy or sell, a strong buy or sell or market neutral. Also indicates if the stock is a hold, if it is likely to outperform or underperform its industrial sector and whether they recommend over, under or equal weighting the stock relative to its sector.

Review Stock Charts

Performing technical analysis on stock charts is one of the most accurate and objective market analysis methods used as a form of stock research by many successful traders and investors. Benzinga offers users the most sophisticated charts provided by TradingView. This lets you access advanced charts you can easily customize to fit your specific stock research needs. 

Read the News

The most important news for individual stocks are quarterly and yearly earnings releases, the introduction of new products and the issue of new stock in the company. Other pertinent news involves insider transactions, which consist of the purchase and sale of a company’s stock by company officers and major shareholders.

Macroeconomic news, news covering the general market and geopolitical events also influence stock prices. Therefore, keeping a keen eye on the news helps traders and investors find opportunities or indicate when to initiate or liquidate existing positions. 

In addition to providing some of the best charts available on the internet, Benzinga offers the latest news on just about every U.S. and foreign listed stock. Stocks typically react quickly to financial news, whether positively or negatively, so keeping an eye on the news of stocks you hold or plan to buy makes sense. 

The speed with which you get this news also determines whether you can take advantage of it before the market moves to fully discount the new information, and Benzinga boasts that it offers “the fastest newsfeed in the game.” 

Check Current Indicators

Becoming more familiar with technical and fundamental indicators can only improve investors' and traders' familiarity with the stock researched and should eventually lead to making more profitable transactions. You can review both fundamental and technical indicators at the Benzinga or Benzinga Pro websites.

Key fundamental indicators include economic data releases like gross domestic product (GDP) that provide a sense of the strength of the overall economy a company operates in. They can also include important company metrics for a particular stock, like its EPS, its dividend payout and consistency, its debt ratio and its P/E ratio. Such indicators give investors a look into a company’s profitability and how it deals with its responsibilities to shareholders.

Popular technical indicators can include the Relative Strength Index (RSI) and moving average convergence divergence (MACD), which give investors an idea of a company’s share price is fairly valued, undervalued or overvalued. 

Consider the Value of the Investment

You can take into account a company’s business, business model, management and the measures it takes to increase profits to determine its fair value. Your detailed research may indicate that a company’s value may not be accurately expressed in its stock price, and so it may look undervalued or overvalued as a result. This suggests an opportunity for profit may exist.

As you research stocks, you’ll become aware of the intrinsic and nonintrinsic value of each company’s stock you review closely. According to business magnate Warren Buffet, one of the world’s most successful investors, only stocks showing solid fundamentals, strong earnings and potential for continued earnings growth should be considered for long-term investments. 

On the other hand, while companies that show little intrinsic value may be good for short-term speculative trading profits, they typically do not make the best investment options.

How Much Should You Research an Investment?

The amount of research you conduct before taking a position in a stock depends in large part on how comfortable and confident you feel toward the potential investment. Successful investors and traders could be likened to a master detective who collects all the important facts about a company before making a decision to invest or trade in its stock.

Keep in mind that even the best research does not guarantee profitable results. Research just increases the likelihood of you experiencing a satisfyingly profitable transaction in the stock market. 

Should You Research Stocks Before Selling?

Research certainly doesn’t stop after you’ve invested in a stock or other asset. Your research should also include a price level at which you would like to liquidate your investment. 

Also, stock market or other financial news may adversely affect your trade or investment. This means you should definitely do some research before selling any stocks you hold. 

Best Stock Research Platforms

Benzinga vs. Benzinga Pro

Together, Benzinga and Benzinga Pro offer some of the most complete datasets on the financial markets and their various components, providing extensive research and market analysis resources for traders and investors at all levels. 

Benzinga Pro builds on Benzinga’s more basic offerings by also giving users access to an actionable real-time news feed and in-depth technical and fundamental analysis tools for stocks and a slew of other assets and derivative products. 

Frequently Asked Questions

What is the best way to research a stock.

It depends entirely on each individual trader and investor. Many successful traders combine fundamental and technical analysis, which seems to be the most complete way to research a stock, although some traders prefer the objectivity and relative simplicity offered by using technical analysis alone to scan markets and time transactions.

What is the best site to research stocks?

The Benzinga website and its more comprehensive Benzinga Pro offerings have some of the most complete and timely resources for researching stocks you can find online.

How do I find information about stocks?

To find information about stocks, there are several reliable sources you can use. One option is to visit financial news websites such as Benzinga, Bloomberg, CNBC, or Yahoo Finance, where you can find up-to-date information on stocks, including their performance, news, and analysis.

Additionally, you can utilize online brokerage platforms like Interactive Brokers, Webull, or Robinhood, which provide comprehensive information on stocks, including real-time quotes, charts, company profiles, and financial reports.

About Jay and Julie Hawk

Jay and Julie Hawk are a married financial writing and authorship team who co-founded TheFXperts, a notable financial writing services provider. The Hawks each worked professionally in the financial markets and have more than 40 years of trading experience among them. Together, they write books, trade forex online for their own account and others, mentor traders, and have worked actively as professional freelance writers specializing in financial topics for over 15 years.

5 ways to research stocks like the pros

Advertiser disclosure.

We are an independent, advertising-supported comparison service. Our goal is to help you make smarter financial decisions by providing you with interactive tools and financial calculators, publishing original and objective content, by enabling you to conduct research and compare information for free - so that you can make financial decisions with confidence.

Our articles, interactive tools, and hypothetical examples contain information to help you conduct research but are not intended to serve as investment advice, and we cannot guarantee that this information is applicable or accurate to your personal circumstances. Any estimates based on past performance do not a guarantee future performance, and prior to making any investment you should discuss your specific investment needs or seek advice from a qualified professional.

How We Make Money

The offers that appear on this site are from companies that compensate us. This compensation may impact how and where products appear on this site, including, for example, the order in which they may appear within the listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. But this compensation does not influence the information we publish, or the reviews that you see on this site. We do not include the universe of companies or financial offers that may be available to you.

Editorial disclosure

All reviews are prepared by our staff. Opinions expressed are solely those of the reviewer and have not been reviewed or approved by any advertiser. The information, including any rates, terms and fees associated with financial products, presented in the review is accurate as of the date of publication.

• Share this article on Facebook Facebook
• Share this article on Twitter Twitter
• Share this article on LinkedIn LinkedIn
• Share this article via email Email

At Bankrate, we take the accuracy of our content seriously.

“Expert verified” means that our Financial Review Board thoroughly evaluated the article for accuracy and clarity. The Review Board comprises a panel of financial experts whose objective is to ensure that our content is always objective and balanced.

Their reviews hold us accountable for publishing high-quality and trustworthy content.

• • Investing
• • Wealth management
• Connect with James Royal, Ph.D. on Twitter Twitter
• Connect with James Royal, Ph.D. on LinkedIn LinkedIn
• Get in contact with James Royal, Ph.D. via Email Email
• Connect with Brian Beers on Twitter Twitter
• Connect with Brian Beers on LinkedIn LinkedIn

The Bankrate promise

At Bankrate we strive to help you make smarter financial decisions. While we adhere to strict editorial integrity , this post may contain references to products from our partners. Here's an explanation for how we make money .

Founded in 1976, Bankrate has a long track record of helping people make smart financial choices. We’ve maintained this reputation for over four decades by demystifying the financial decision-making process and giving people confidence in which actions to take next.

Bankrate follows a strict editorial policy , so you can trust that we’re putting your interests first. All of our content is authored by highly qualified professionals and edited by subject matter experts , who ensure everything we publish is objective, accurate and trustworthy.

Our investing reporters and editors focus on the points consumers care about most — how to get started, the best brokers, types of investment accounts, how to choose investments and more — so you can feel confident when investing your money.

The investment information provided in this table is for informational and general educational purposes only and should not be construed as investment or financial advice. Bankrate does not offer advisory or brokerage services, nor does it provide individualized recommendations or personalized investment advice. Investment decisions should be based on an evaluation of your own personal financial situation, needs, risk tolerance and investment objectives. Investing involves risk including the potential loss of principal.

Editorial integrity

Bankrate follows a strict editorial policy , so you can trust that we’re putting your interests first. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions.

Key Principles

We value your trust. Our mission is to provide readers with accurate and unbiased information, and we have editorial standards in place to ensure that happens. Our editors and reporters thoroughly fact-check editorial content to ensure the information you’re reading is accurate. We maintain a firewall between our advertisers and our editorial team. Our editorial team does not receive direct compensation from our advertisers.

Editorial Independence

Bankrate’s editorial team writes on behalf of YOU – the reader. Our goal is to give you the best advice to help you make smart personal finance decisions. We follow strict guidelines to ensure that our editorial content is not influenced by advertisers. Our editorial team receives no direct compensation from advertisers, and our content is thoroughly fact-checked to ensure accuracy. So, whether you’re reading an article or a review, you can trust that you’re getting credible and dependable information.

How we make money

You have money questions. Bankrate has answers. Our experts have been helping you master your money for over four decades. We continually strive to provide consumers with the expert advice and tools needed to succeed throughout life’s financial journey.

Bankrate follows a strict editorial policy , so you can trust that our content is honest and accurate. Our award-winning editors and reporters create honest and accurate content to help you make the right financial decisions. The content created by our editorial staff is objective, factual, and not influenced by our advertisers.

We’re transparent about how we are able to bring quality content, competitive rates, and useful tools to you by explaining how we make money.

Bankrate.com is an independent, advertising-supported publisher and comparison service. We are compensated in exchange for placement of sponsored products and services, or by you clicking on certain links posted on our site. Therefore, this compensation may impact how, where and in what order products appear within listing categories, except where prohibited by law for our mortgage, home equity and other home lending products. Other factors, such as our own proprietary website rules and whether a product is offered in your area or at your self-selected credit score range, can also impact how and where products appear on this site. While we strive to provide a wide range of offers, Bankrate does not include information about every financial or credit product or service.

Knowledge is power on Wall Street, and investing professionals have the reputation of being the most knowledgeable. But if you’re not a pro? Well, individual investors can still take advantage of many of the pros’ top techniques and turn some of their own knowledge into real investing success.

Individual investors have many advantages over the big institutional investors – especially the ability to invest with a long-term mentality and to buy out-of-the-way hidden gems. But they can also leverage information to identify some potentially high-flying stocks, too.

Here are a few of the best ways for individual investors to research stocks and get a leg up on their professional counterparts, as well as one way they can keep more of those gains.

How to research stocks like a pro

Here are five techniques that pros use to figure out what’s really going on in the market. Often these methods require a little more hustle than just reading the numbers on a screen or balance sheet, but you can also find out more that way than you could otherwise.

1. Use a stock screener

A stock screener is a great place to begin for investors on the hunt for new ideas. With a good stock screener, you can find stocks that are hitting 52-week lows, if you’re a value investor , or new highs, if you’re looking for momentum stocks that could continue their trend.

You can pair this information with other financial details that are available in the screener, such as a company’s revenue growth, profit margins, debt and many more. You’ll want to look for a high-quality screener so that you can get highly granular – and fully up to date – information.

You can find stock screeners at some of the top brokers , but you may want to hunt around for one that fits your exact needs and process best.

2. Talk to management teams

It may seem like the management teams are off-limits to individual investors, but not always. Sure, Meta Platforms CEO Mark Zuckerberg is not likely to take your call, but you have a real chance to ask questions at smaller firms, where execs will speak with current or future investors.

You’ll want to have pertinent questions lined up that show you know the business, and it can be a moment to ask insiders the finer points about the business. Even if you can’t get on the phone with the top brass, you can access a public company’s investor relations department. IR, as it’s known, can give you financial details or perspective on a press release, among other things.

It can also be helpful to ask a management team which other companies they respect most in the industry and why. This line of questioning can give you a good perspective on which rivals are worth watching – and they may even be worth investing in, too.

3. Do your own first-hand research

Getting out from behind the desk can be a great way to find out what’s actually going on before it breaks big. That’s classic advice from investing legend Peter Lynch , who recommends watching for new trends emerging with friends, whether it’s a new product or service.

Have you heard about a great new restaurant in the area? Check it out yourself and see what you like and whether its operation is running smoothly. Your neighbor likes a new tech gadget? See for yourself what it’s all about – and then assess if the company is worth an investment. (Are you a beginning investor? Here’s how to invest in stocks .)

This way is great for finding a hot new consumer brand, especially in the restaurant or retail spaces. Food fans could easily have picked up future high-flyers such as Chipotle and Panera before they became big household names. Even if investors didn’t get in at the bottom, these restaurants had years of attractive growth remaining in them after they were “discovered.”

4. Run your own channel checks

Especially for consumer or retail brands, you can do some of what Wall Street analysts call “channel checks.” A channel check is a fancy name for actually seeing what amount of product is moving through the system. A channel check can give you valuable information about what’s happening now before it shows up in the reported financial statements in three or six months.

For the pros, a channel check might involve calling up suppliers and customers of a target investment and seeing how much business the company is doing. In the case of individual investors, you can do much of the same with consumer brands, asking questions such as:

• Is that new product getting shelf space at your local grocery store?
• Is the product getting more space over time or less?
• Is the parking lot at that hot new chain restaurant or retail shop getting even more crowded?
• Or maybe the restaurant is getting less crowded or getting poor reviews?

You can run your own channel checks and see trends that might not show up in the results yet.

5. Subscribe to a newsletter

An investing newsletter is a great resource for individual investors, and it’s a technique that pro investors use as well, though the two kinds of newsletters typically focus on much different analysis. Still, a good newsletter can help individual investors find and evaluate good investment opportunities, and give them a wider perspective, since the market is so large.

It may seem like Wall Street investors are omniscient, but they outsource a lot of research to third parties. That’s exactly what individuals can do, but they may have an additional advantage, because they can invest in small, high-growth businesses that the big investors can’t touch. Plus, you may have the added advantage of bouncing good stock ideas off the newsletter pros.

Look for a reputable newsletter company with a long track record and a history of treating subscribers well. In some cases, you can find good newsletters for a few hundred dollars a year.

How to really let your money compound

While Wall Street has a reputation for being knowledgeable, success is not all about having the most info. The best investors really know how to minimize taxes and keep more of their money. So you’ve researched and found a great stock – here’s how to keep your gains compounding.

You may have found an undervalued stock that should go up to fair value and then you’ll sell. Or you may hunt for compounders, stocks that can grow for years, even decades. Think of PayPal, Amazon , or Starbucks, for example. It’s a classic dilemma between growth and value investing .

But whether you’re a value or growth investor, it’s important to realize that if you sell a winning investment in a taxable account, you’ll be liable for taxable gains ( at either the short- or long-term rates ).

Instead, by not selling, you’ll defer any taxes, meaning that the wealth remains yours. But not only do you avoid the taxes, you’ll be able to compound on the full pre-tax amount each year. To be clear, you will always still need to watch out if you owe taxes or not, but by allowing the investment to compound, you give yourself a better chance for the investment to grow beyond what it would have been had you cashed out earlier.

For example, imagine you invested $10,000 and gained 20 percent annually but sold right at the end of the year, incurring a tax rate of 20 percent. In five years you’d turn $10,000 into $21,000, and average about 16 percent annualized gains, since the government took its cut each year.

But what if you held your stock during that whole period? You’d compound the whole amount at 20 percent annually, turning $10,000 into just over $24,883. Even if you decided to sell at that point, you’d still realize an after-tax amount of about $21,906 – more than in the first scenario.

The difference? You’ve compounded further gains on top of the gains you had to pay taxes on in the first scenario. In effect, by not selling your stock, you’re forcing the government to defer its taxes and to give you the ability to keep compounding on the full, pre-tax amount.

That’s how legendary investors compound their gains when it makes sense. It’s not just a question of having the best research but also using it the best, in this case by minimizing taxes.

Bottom line

While it’s easy to lament that Wall Street pros have huge advantages over individual investors, even the little guys have ways to use some of the pros’ techniques. And in some cases, individual investors even have advantages that large investors can never take advantage of.

Editorial Disclaimer: All investors are advised to conduct their own independent research into investment strategies before making an investment decision. In addition, investors are advised that past investment product performance is no guarantee of future price appreciation.

Related Articles

6 best investments for beginners

5 ways to use your brokerage like a savings account

How to invest in stocks: Learn the basics to help you get started

4 ways to tell if a stock is undervalued

• Main menu Stock Trading Apps
• Best Investment Apps
• Best Paper Trading Apps
• Best Penny Stock Apps
• Best Day Trading Apps
• Best Free Stock Apps
• Best Social Trading App
• Best AI Stock Trading App
• Best Forex Apps
• Best ETF Apps
• Best Commodity Apps
• Best Demo Trading App
• Best Copy Trading App
• Best Options Trading App
• Best CFD Trading App
• Best Stock Portfolio Trackers
• Best Stock Market Research & Analysis Software
• Best AI Stock Picking Services And Software
• Best Alternative Data Services for Stock Market Investors
• Best Investment Tools & Analysis Software
• Best Stock Trading Signals
• Best Stock Analysis Apps
• Best Stock Alerts Services
• Best Free Stock Screeners & Apps
• Best Stock Tips Services
• Main menu Crypto Trading Apps
• Best Bitcoin Trading App
• Best Bitcoin Wallet App
• Best Altcoin Apps
• Best NFT Apps
• Best Metaverse App
• Best Crypto Game App
• Best DeFi Apps
• Main menu Cryptocurrencies
• How To Buy Crypto With PayPal
• Best Crypto Presales
• Best Meme Coins
• Best Crypto to Buy
• Buy Wall Street Memes
• Buy LuckyBlock
• Lucky Block Price Prediction
• How To Buy Meme Kombat
• Meme Kombat Price Prediction
• How To Buy TG.Casino Token
• TG.Casino Token Price Prediction
• How To Buy Bitcoin Minetrix
• Bitcoin Minetrix Price Prediction
• How To Buy Bitcoin ETF Token
• Bitcoin ETF Token Price Prediction
• How To Buy Sponge V2 Token
• Sponge V2 Token Price Prediction
• How To Buy Smog Coin
• How To Buy Scotty The AI
• How To Buy Frog Wif Hat Token
• How To Buy Green Bitcoin
• Main menu Robot Trading Apps
• Quantum Prime Profit Review
• Immediate Connect Review
• Immediate Granimator Review
• Quantum Flash Review
• Bitindex Prime Review
• Bitcoin 360 Ai Review
• Biticodes Review
• PrimeXBT App Review
• BitVestment Review
• Qumas AI Review
• Bitsoft360 Review
• Bitcoin Sprint Review
• Main menu Trading App Reviews
• Robinhood App Review
• Robinhood Alternatives
• Moneybox App Review
• Revolut App Review
• eToro App Review
• IG App Review
• Stash App Review
• Trading 212 App Review
• Oanda App Review
• Vanguard App Review
• MooMoo Trading App Review
• Plus500 App Review
• Forex.com App Review
• FXCM App Review
• Capital.com App Review
• Webull App Review
• Hello Stake App Review
• Degiro App Review
• Freetrade App Review
• Fineco App Review
• TradeZero App Review
• Main menu Education
• What Is Scalping in Trading?
• What Is Insider Trading?
• What Are Blue Chip Stocks?
• What is Day Trading?
• Why Do Stocks Go Up and Down?
• What is P/E in stocks?
• What Is a Bull Market in Stocks?
• How to Buy Penny Stocks
• What is Yield in Stocks?
• What Happens to Stocks in a Recession?
• How to Research Stocks
• Why do Stocks Split?
• What Are Small Cap Stocks?
• How to Invest in Dividend Stocks
• What is Market Cap in Stocks?
• What Are Futures in Stocks?
• What is Float in Stocks?
• What are Options in Stocks?
• What is EPS in Stocks?
• What is a Limit Order in Stocks?
• How Do Stocks Work?
• What Are Meme Stocks?
• What is a Put in Stocks?
• What Is Beta in Stocks?
• What is Fibonacci retracement?
• What is the MACD Indicator?
• What are Moving Averages in Trading?
• Supertrend Indicator Explained
• Candlesticks Explained
• Stock Market Calculator

How to Research Stocks – A Step-by-Step Guide

You must learn how to research stocks properly if you want longevity as a trader or investor. The approach might differ depending on your long-term investment goals. However, primary considerations like vital financial ratios, chart patterns, trends, and management analysis are foundational.

This guide will cover the stock market for beginners and how you can research it for informed trading decisions. You’ll also learn what to look for when buying stocks to avoid scams and losing trades. With that in mind, let’s begin with learning the stock market metrics.

Significance of Informed Decision-Making

Role of research in mitigating investment risks, long-term benefits of diligent stock research, fundamental analysis vs. technical analysis, combining both approaches for holistic insights, quantitative vs. qualitative research in stock analysis, leadership and management effectiveness, evaluating board structure and independence, examining executive compensation practices, key information to gather before investing, customizing checklists based on investment objectives, regularly updating and revising research checklists, recap of key research strategies, importance of stock research.

One brilliant thing about today’s world is its accessibility to information . You don’t need to go to the library or buy newspapers to capture information about the stock market. Your smartphone is powerful enough to bring you everything you need to know before trading.

We recommend adding alternative data services to your research tools. Of course, news platforms are also crucial to stock research.

You can rely on expert trading opinions and follow trends. Most trading platforms allow experts to post their trades for copy trading, while others include a social chat feature. Notwithstanding, you’ll miss out on developing a trading strategy that works with or without expert opinions.

We’d rather have you research a stock before trading than rely solely on AI or experts. The latter can fix you up for a quick trade. However, you must know how to value a stock to settle in for the long run.

You can get away with making mistakes in virtual trades. eToro offers a $100,000 virtual trading account that can accommodate your mistakes until you master how to research stocks. Nonetheless, real-world trading decisions will cost you real money.

Informed decision-making relies on facts, not emotions or opinions . It doesn’t matter whether you feel a stock’s value will rise or not. What matters are the facts that support your feelings or opinions.

Informed decision-making doesn’t guarantee successful trades , but you’ll dodge several sinkholes. This approach prevents you from trading on impulse.

We recommend trading with an amount you don’t mind losing . Even so, you cannot afford to lose it when research could’ve helped you avoid the wrong decisions.

The significance of informed decision-making goes beyond one trade. You’ll develop a trading pattern and strategy that’ll keep you afloat in the long run. Unnecessary losses can quickly drain your account, leaving you nothing to trade with.

Stock trading comes with risks , even for seasoned traders. The same applies to other markets like commodities, metals, cryptocurrency, forex, indices, ETFs, etc. Hence, traders try to eliminate as much risk as possible, reducing it to a bearable level.

Investing research time in the stock market mitigates investment risks . For example, you’ll see if a company has a looming scandal that can destroy its stocks. You wouldn’t mind looking elsewhere after discovering such news.

Another example is reviewing technical indicators like the MACD indicator and oscillators. These tools can help you identify swing points in a stock’s price movement. We are certain you’ll know when to enter and exit the market with such details.

You’ll easily identify large and small-cap stocks with adequate research. These have different risk levels for investments.

Research identifies risks that price chart overviews might not indicate . Like the example above, a stock might be enjoying a bull run when setting up for a sideways and bear market.

Consider research like a magnifying glass. We’ll show you how to know which stocks to buy and give you the research approach for further use.

Your decision-making will improve as you rely more on facts than on impulse . For example, a market might be in a bear run while the trading volume steadily increases. That means the sentiment is positive, and a price swing is about to occur, taking the stock upwards.

The following are the long-term benefits of diligent stock research:

• Higher returns from successful trades
• Improved financial literacy occurs as you grasp concepts like valuation metrics, analytical methods, technical graphs, etc.
• Long-term wealth creation through investing in high-quality stocks
• Improved confidence in your trades
• Minimized risk
• Enhanced financial well-being

You’ll have more money to invest and continue earning from the market. Research does not only cover learning how to know what stocks to buy. It also covers dividend stocks , a crucial approach to long-term income.

Trade Stocks Now

Your capital is at risk

Different Approaches to Stock Research

There are different approaches to learning about the stock market, with distinct advantages. Some people prefer numbers through charts and technical indicators . Others prefer qualitative information like news reports, company announcements, SEC filings, government regulations, etc.

The table below shows the difference between fundamental and technical analysis:

You can see how fundamental analysis complements technical analysis from the table above. Learning the two approaches will take time. However, you’ll be glad to know them, as they are the fundamentals of learning how to research stocks.

Being a long-term investor does not mean throwing away technical analysis. You won’t focus on short-term price movements. Instead, you will focus on the overall picture months and years of trading data revealed.

Long-term investors still use technical indicators like moving averages to smooth steep price swings. Similarly, short-term investors can benefit from assessing an asset’s quality and comparing it with market trends. Alternative data like news and economic indicators (e.g., the inflation rate) can add context to historical price data and trading volume.

A stock split might allow new investors to buy shares at a lower price, but that shouldn’t be your sole influence. We recommend combining fundamental analysis and technical analysis for holistic insights . You’ll take more time to identify trading opportunities, but the effort is worth it.

Most trading apps, especially stock market research and investment software, have tools for both analyses. Some offer virtual trading accounts to get you started toward becoming a seasoned stock market analyst.

You cannot escape these analyses unless you trade for leisure. We’ll show you how to value a stock with fundamental and technical research.

The fundamental difference between quantitative and qualitative research lies in numbers and words. Quantitative research deals with numbers and statistics. That is where you’ll find terms like standard deviation, percentiles, price-to-earnings ratios, beta in stocks , etc.

Quantitative research relies on data-driven techniques to identify market trends and trading signals. Most technical tools are built on quantitative research algorithms.

Qualitative research brings in a subjective analysis of non-quantifiable assets or data . For example, you can review employers’ appraisals to gauge a company’s work culture.

Reading the news, events, product launches, mergers, acquisitions, new regulations, etc., make up part of qualitative research. The idea is to draw an inference from the data.

Let’s see a practical example. Company A has a disruptive product on the market. However, the CEO is a former gambler with several debt cases.

The CEO’s background immediately raises red flags about the company. You’ll likely refrain from investing because the CEO’s track record is not stellar. Compare that to a CEO who has headed successful companies, and you’ll see your perception change .

Qualitative research requires a few mathematical tools . You can stay on your sofa and read about any aspect of a company as needed. A few hours will leave you with enough information to appraise the company as credible or suspicious.

Some alternative data services attempt to collate qualitative data in one spot . They can help narrow your research instead of sifting through terabytes of data on the internet.

Management and Corporate Governance Analysis

This section is qualitative, as you don’t need complex mathematical skills to evaluate it. You can gain information through the company’s governing and corporate structure. That goes beyond the management structure most companies display on their websites.

Dig deeper into the official books. For transparency, most companies allow the public to see their governance structure.

The things you can do at this stage include the following:

The best approach to assessing leadership and management effectiveness comes from individual strengths . Review the leaders’ backgrounds, from the CEOs to other management staff. You’ll discover that some CEOs have significant success stories while others are in for the first time.

Progress from individual strengths to corporate decisions . Review major decisions the company has made in the past. These include partnership deals, advertorials, mergers, product investments, etc. The more success stories you have, the more effective the company’s leaders are.

Evaluate milestones and compare them with the company’s vision . Fulfilling milestones points to the leadership’s commitment to achieving its goals. That can boost investor confidence to buy the company’s stocks.

An independent board can make better objective decisions because they do not materially connect with the company. Former directors and company executives should not be part of the board. The more independent a board is, the more likely it is to make decisions in the company’s best interest .

Review each board member and their ties to the company . That is the approach to evaluating the board’s independence.

Executive compensation should be transparent. Cunning or missing information in this regard is a red flag.

Executives should receive good compensation. However, their compensation shouldn’t come at the expense of the company.

Building a Research Checklist

Here are a few details you should gather before investing:

• Your investment goals
• Your risk tolerance
• The company’s financial statements
• Market capitalization
• Price-to-earnings ratios
• Financial ratios
• Leadership and management structure
• Major news and events

The list in the previous section is unfixed. We recommend customizing it based on your investment objectives. For example, dividend yields will come if you want to be a long-term investor.

Determine if you are investing for the short- or long-term. Then, determine how much you want to invest.

Revisit your checklists and add new details as the market changes. For example, you might add the analysis from reputable platforms to your checklists. The key is recognizing a crucial detail and updating your checklists.

Remember to use the following research strategies:

• Begin with fundamental analysis
• Analyze qualitative data, including financial statements, ratios, and leadership/management structure
• Identify the stocks and view their price charts
• Add indicators and oscillators to identify trends
• Review news and other events affecting the company

Learning how to research stocks properly will spare you the pitfalls of impulse trading. You’ll make better-informed decisions after reviewing multiple company and trading data sets . Also, combine fundamental and technical analysis for holistic insights.

Practice with the eToro virtual trading account.

Visit eToro Now

How do you research a stock before you buy it?

Research involves finding as much information as possible about the company and the stock price movement.

How do I research my own stocks?

Begin by reviewing the company’s financial statements and ratios. Then, use technical analysis platforms to analyze the stock’s price movements and identify trends. You can add news and events to gauge market sentiment.

What are the best stocks for beginners?

We can’t recommend specific stocks, as things may change when you read this article. Instead, we recommend blue-chip companies because of their stability and steady growth.

What stock pays the highest dividend?

Texas Instruments Inc., Lockheed Martin Corporation, and Air Products Chemicals, Inc. pay the highest dividends. This might change in the coming months.

What’s the safest stock to invest in?

The safest stocks have the lowest volatility. Find stocks in low-volatile industries.

• https://www.investopedia.com/terms/s/sec.asp
• https://rpc.cfainstitute.org/en/policy/positions/board-independence
• https://edition.cnn.com/markets/fear-and-greed
• https://www.nasdaq.com/market-activity
• https://finance.yahoo.com/news/7-stocks-rattled-corporate-scandals-154313784.html

Jeremiah Awogboro

Jeremiah Awogboro is an experienced content writer with over 8 years of experience. He has a qualified MBChB degree and a keen interest in the stock market and the finance industry. His background in the industry has provided him with valuable experience in this field. Awogboro is dedicated to assisting and reaching out to as many people as possible through his writing. In his spare time, he enjoys music, football, traveling, and reading.

eToro: Overall Best Stock App with 0% Commission

stockapps.com  has no intention that any of the information it provides is used for illegal purposes. It is your own personal responsibility to make sure that all age and other relevant requirements are adhered to before registering with a trading, investing or betting operator. Contracts for Difference (“CFDs”) are leveraged products and carry a significant risk of loss to your capital. Please ensure you fully understand the risks and seek independent advice.By continuing to use this website you agree to our terms and conditions and privacy policy.

Trading is risky and you might lose part, or all your capital invested. Information provided is for informational and educational purposes only and does not represent any type of financial advice and/or investment recommendation.

Crypto promotions on this site do not comply with the UK Financial Promotions Regime and is not intended for UK consumers.

© stockapps.com All Rights Reserved 2024

• Join the AMA
• Find learning by topic
• Free learning resources for members
• Credentialed Learning
• Training for teams
• Why learn with the AMA?
• Marketing News
• Academic Journals
• Guides & eBooks
• Marketing Job Board
• Academic Job Board
• AMA Foundation
• Diversity, Equity and Inclusion
• Collegiate Resources
• Awards and Scholarships
• Sponsorship Opportunities
• Strategic Partnerships

We noticed that you are using Internet Explorer 11 or older that is not support any longer. Please consider using an alternative such as Microsoft Edge, Chrome, or Firefox.

2020 Top 50 U.S. Market Research and Data Analytics Companies

Diane Bowers

A full ranking of the top market research and data analytics companies in the U.S. for 2020

The “2020 Top 50 U.S. Report”—formerly known as “The Gold Report”—is developed by Diane Bowers and produced in partnership with the Insights Association and Michigan State University . The report is also sponsored by the AMA, ESOMAR and the Global Research Business Network . The report includes a ranking of the top 50 companies, a breakdown of trends by Bowers , and an analysis of the market research and analytics industry  by Michael Brereton, Melanie Courtright and Reg Baker.

50. RTi Research

Founded: 1979 2019 U.S. revenue: $12.9 million Percent change from 2018: -3% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $12.9 million U.S. employees: 45

In a world awash in data, the challenge is to turn data into something meaningful, something that can be communicated simply and acted upon effectively. RTi Research meets that challenge head-on, turning data into meaning through smart research design, flawless execution and innovative storytelling. Everything the company does is aimed at helping its clients move their ideas and insights through their organizations to influence change. 

RTi has conducted research in just about every category in the U.S. and globally. Informed by 40 years of experience across categories and cultures, RTi knows what works and what doesn’t, when to leverage new technology and methods, and when traditional approaches are best.

49. Hypothesis

Founded: 2000 2019 U.S. revenue: $18.3 million Percent change from 2018: -4.7% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $18.3 million U.S. employees: 61

Hypothesis uses insights, strategy and design to help important brands do amazing things. The company specializes in tough questions that take creative, multidimensional approaches, thoughtful strategy and a broad business perspective. Hypothesis’ approach combines inventive consumer-centric qualitative research, advanced analytics, strategic thinking and data visualization. Its award-winning design team translates complex information into compelling, easy-to-understand deliverables to socialize learnings and engage teams. 

In 2018, Hypothesis added important new capabilities with the launch of Momentum, a strategy that turns insight into application with downstream marketing and implementation planning. The Momentum team has worked alongside Hypothesis consultants on strategic engagements with clients focused on brand strategy, product development, and led dozens of workshops with senior and C-level executives to socialize insights and ideate on next steps. 

In 2019, Hypothesis’ focus on growth continued with its expansion to the Midwest and establishment of its Chicago office. From this office, the company will be able to service new and current clients in the Midwest and on the East Coast.

48. Bellomy Research

Founded: 1976 2019 U.S. revenue: $21 million Percent change from 2018: 1.4% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $21 million U.S. employees: 116

Bellomy is a privately held, family-owned, full-service market intelligence company. Bellomy focuses on driving successful business outcomes through the design and delivery of solutions that yield deeper customer understanding. The company surrounds its clients’ business challenges with an unparalleled mix of knowledge and experience, marketing science and proprietary research technology. 

Bellomy’s work involves both B2C and B2B environments—with qualitative and quantitative insight solutions spanning market segmentation, customer experience and journeys (including digital user experiences), brand equity, product innovation, shopper insights, marketing optimization, social research platforms and research technology. Bellomy works with clients across a broad range of categories and industries including consumer packaged goods, financial services, automotive, retail, restaurant and hospitality, telecommunications and technology, apparel and textiles, utilities, healthcare, insurance and home improvement.

Bellomy serves as an extension of its clients’ marketing research and customer experience departments by integrating a broad set of capabilities and areas of expertise, including segmentation, customer (and digital experience), shopper insights, social research platforms, brand equity, product innovation and marketing optimization. In addition, Bellomy clients leverage SmartIDEAS, the firm’s enterprise consumer knowledge and insight platform. 

47. Edelman Intelligence

Founded: 1999 2019 U.S. revenue: $21 million Percent change from 2018: 12.9% 2019 non-U.S. revenue: $11.5 million Percent from outside U.S.: 35.4% 2019 worldwide revenue: $32.5 million U.S. employees: 131

Edelman Intelligence (EI) is the global research and analytics consultancy of Edelman, the world’s largest global communications firm. Based in New York, with employees in 18 offices internationally, EI houses more than 200 consultants, strategists, researchers, data scientists, data visualization specialists and analysts worldwide. Its specialists are method-agnostic and leverage the best of primary and secondary research, advanced analytics and business science to solve business and communications issues for its clients. EI’s offering spans the full spectrum of client needs, from mapping the current environment and targeting key audiences, to optimizing content and measuring business impact. 

EI partners with early-stage start-ups and Fortune 100 companies alike, providing strategic research, analytics, and insights-based marketing and communications counsel for a broad range of stakeholders and scopes, including government and public affairs, corporate reputation and risk strategy, crisis and issues management, employee experience and talent advisory, executive positioning, strategic communications and public relations, marketing and branding strategy, customer experience and insights, mergers, acquisitions and market entry strategy and more.

Key accomplishments in 2019 included advancement of its Edelman Trust Management (ETM) capabilities, including an evolution of its offering focused specifically on providing guidance for measuring and building trust in brands. Developed building from its 20-plus years studying trust through the Edelman Trust Barometer and the initial iteration of ETM (which explores corporate trust), this proprietary model for brand trust measurement was created in partnership with renowned academics from Harvard Business School and INSEAD, Edelman Brand experts and external marketing thought leaders. In recent months, this model has been engineered to consider fundamental transformations to consumer/brand relationship dynamics that the COVID-19 pandemic has accelerated.

46. KS&R

Founded: 1983 2019 U.S. revenue: $21.7 million Percent change from 2018: -1.4% 2019 non-U.S. revenue: $3.6 million Percent from outside U.S.: 14.2% 2019 worldwide revenue: $25.3 million U.S. employees: 100

KS&R is a privately held strategic consultancy and full-service marketing research company. For nine consecutive years, KS&R has received the highest Gold Index composite score of any provider in the Prevision/Inside Research survey of marketing research buyers. This is a testament to the company’s passion for excellence and client-first business philosophy—wherein KS&R empowers its clients with timely, fact-based insights so they can make smarter decisions and be confident in their actions.

KS&R creates and executes global custom market research solutions for some of the best-known corporations in the world in more than 100 countries and 50 languages. It has extensive and diverse industry experience with particular strength in healthcare (pharma and device), technology, entercom, transportation, professional services, and retail and e-commerce. Team members often include business strategists with client-side experience and deep industry knowledge.

In 2019, KS&R leveraged its expansive network of pharmacy panels to build world-class capabilities for pharma inventory measurement and healthcare insights. Its marketing scientists have driven marked advances in pricing decision support, which have now been validated by positive in-market results. KS&R expanded its portfolio to include insights fusion across multiple channels of content (primary research, social media, web-based information, etc.). And finally, it introduced its KS&R Win-Loss program that provides actionable insights for how organizations can improve their value proposition and sales performance to close more deals.

Founded: 1911 2019 U.S. revenue: $22.7 million Percent change from 2018: 12.9% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $22.7 million U.S. employees: 78

NAXION guides strategic business decisions globally in healthcare, information technology, financial services, energy, heavy equipment and other B2B markets, drawing on depth of marketing experience in key verticals and skilled application of sophisticated and inventive methodologies. The firm’s NAscence Group helps life science innovators develop commercialization strategy through clinical trials design and selection of target indications, forecasting, brand planning and other research-based consulting services.

Engagements routinely include market segmentation, opportunity assessment and innovation, demand forecasting and pricing, positioning, brand health, market monitoring and lifecycle management. The firm deploys multiple data streams including primary research (qualitative and quantitative), secondary data, customer databases and other complex datasets to develop an integrative perspective on business problems. The firm also builds custom panels for B2B markets.

Project leaders with sector experience and research proficiency are supported by in-house methodologists and a wide portfolio of advanced analytic tools, including proprietary modeling services and software, all of them highly customized. The firm continues to invest significant resources in intellectual capital to enhance enterprise decision support with cutting-edge methods, including specialized “small data” choice models, new predictive techniques using big data and brand-customized text analytics. Its Farsight suite supports the building of highly dynamic models capable of producing forecasts for complex market scenarios, including paradigm-shift technologies, and gives market monitoring programs a forward-looking perspective that guides timely market interventions. Other services include litigation and regulatory support, often involving expert testimony in cases involving trademark confusion, deceptive advertising and brand equity. NAXION’s strong commitment to operational excellence is reflected in ISO certification and in-house operations capabilities to deliver exceptional levels of quality control. 

Founded: 1991 2019 U.S. revenue: $24.2 million Percent change from 2018: -3.6% 2019 non-U.S. revenue: $1.2 million Percent from outside U.S.: 4.7% 2019 worldwide revenue: $25.4 million U.S. employees: 144

Gongos is a consultative agency that places customers at the heart of business strategy. Partnering with insights, analytics, marketing, strategy and customer experience groups, Gongos operationalizes customer centricity by helping companies both understand their customer needs and deliver on them better than anyone else.

From product innovation to portfolio management, customer experience to consumer journeys, pricing strategies to marketing optimization, and trend analysis to predictive modeling, Gongos provides both outside-in and inside-out approaches across organizations to drive greater customer attraction, retention and lifetime value.

Gongos further serves as a translator to help cross-functional teams fuel the competency to gain and apply consumer wisdom, transform decisions into action and navigate organizational change. Coalescing enterprise data with primary research and curating insights for multiple audiences further empowers stakeholders to achieve greater ROI by ensuring information is designed to influence actions and behaviors from executives to the frontline. 

Gongos’ consultative tools stem from change management principles that help organizations navigate the transformation often necessary to create a more outside-in perspective as they reorient around the customer. Gongos’ approaches to engage multiple audiences include communication strategies and tactics grounded in frameworks such as its adoption-to-advocacy model and human-centered design.

43. Maru/Matchbox **

Founded: 2016 2019 U.S. revenue: $28 million Percent change from 2018: 3.7% 2019 non-U.S. revenue: $14 million Percent from outside U.S.: 33.3% 2019 worldwide revenue: $42 million U.S. employees: 150

Maru/Matchbox began disrupting the market research industry in 2000. Powered by proprietary technology, its expert teams are deeply invested in key sectors of the economy, including consumer goods and services, financial services, retail, technology, healthcare, public services, and media and entertainment. Maru/Marchbox provides organizations with the tools and insights to connect with the people that matter most, so they can build and maintain a competitive advantage. 

In 2019, Maru/Matchbox released a series of innovative research solutions. 

• Digital Media Measurement is a campaign evaluation approach that enables clients to better understand how content, channels and brands interact to deliver effective communication. 
• Creative Insight measures people’s implicit and explicit responses to advertising, giving clients a complete picture of how their ad is working. It is designed to evaluate any type of ad or brand communication, across all channels, with best-in-class benchmarks.
• Lissted analyzes how members of communities relevant to clients react to content, tweets and even websites. 
• Brand Emotion utilizes visual semiotics to identify and leverage the emotional profile of a brand. 

Maru/Matchbox continues to demonstrate innovation and thought leadership through relentless publication of articles and whitepapers.

42. Chadwick Martin Bailey (CMB)

Founded: 1984 2019 U.S. revenue: $28.7 million Percent change from 2018: 20.6% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $28.7 million U.S. employees: 90

CMB is a research and strategy firm, helping the world’s leading brands engage, innovate and grow amid deep disruption. The company leverages the best of advanced analytics, consumer psychology and market strategy to tackle critical business initiatives, including market identification, segmentation, brand health, loyalty and advocacy, and product and service development.

For more than 35 years, CMB has helped the most successful brands and their executives give voice to their market through a relentless business decision focus, creative problem-solving and storytelling, deeply consultative approach and flawless execution. With dedicated financial services, media and entertainment, tech and telecom, retail and healthcare practices, CMB’s expert teams understand the complex and evolving technological, social, cultural and economic forces that drive disruption and create opportunity.

In 2020, CMB continued its growth trajectory, including building expertise in gaming and digital platforms and expanding its qualitative and advanced analytics teams. A thought leader in the application of consumer psychology to real world business issues, CMB conducted self-funded research among tens of thousands of consumers to capture the four core benefits that motivate decision-making—identity, emotion, social and functional—providing an in-depth look at more than 80 global brands. Further self-funded research explored the accelerating journey and path to purchase of today’s gamers.

41. Screen Engine/ASI

Founded: 2010 2019 U.S. revenue: $33 million Percent change from 2018: 10% 2019 non-U.S. revenue: $1.9 million Percent from outside U.S.: 5.4% 2019 worldwide revenue: $34.9 million U.S. employees: 132

Screen Engine/ASI is a research-based consumer insights firm that stands for delivering its entertainment and media clients actionable insights and recommendations, not simply data. SE/ASI strives to help clients mitigate risk and maximize the potential for success. Through its Motion Picture and TV Groups, SE/ASI works across all distribution platforms for both domestic and internationally produced content. 

The company is centered on assessing the “abilities” of content as it migrates from the earliest stages of development through multi-channel distribution. The Motion Picture Group is the leader in traditional and digital in theater and online recruited audience screenings. Offerings also include PostTrak, a syndicated domestic and international in-theater exit poll, and ScreenExperts, an early assessment of critical response, creative ad testing, positioning and brand studies, custom work, and location-based and online focus group research. A cross-platform team within this group works with home entertainment, over-the-top and gaming clients. 

The TV group is the leader in location-based ViewTrac dial testing of pilots, programs and ongoing series and conducts online dial testing as well. Other offerings include location-based and online focus groups, promo testing, positioning and brand studies, and a variety of custom studies including custom trackers. SE/ASI syndicates Tracktion trackers including a TV tracker, a theatrical movie tracker, a home entertainment tracker and a premium video-on-demand tracker. All groups work in the company’s media lab equipped for biometric and new technology research. When appropriate, SE/ASI engages in advanced analytics techniques including, but not limited to, segmentation, conjoint, maxdiff and TURF analysis. 

40. MarketVision Research

Founded: 1983 2019 U.S. revenue: $33.2 million Percent change from 2018: 2.5% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $33.2 million U.S. employees: 140

MarketVision Research is a full-service marketing research firm, providing clients with actionable insights about their markets, customers, brands and products. Research areas of focus include product and portfolio development, pricing, branding, segmentation and customer experience. The company offers a full suite of quantitative and qualitative research capabilities and works across industry groups. These include:

• Optimization and discrete choice modeling as it applies to product and service development, branding, packaging and pricing.
• Online communities that are managed and developed entirely in-house with a focus on improving participant engagement and with additional support for mobile participation.
• Hybrid research, which uses 20 in-house moderators, along with marketing science professionals and global project managers, to facilitate qualitative and quantitative research seamlessly.

39. The Link Group

Founded: 1994 2019 U.S. revenue: $34.2 million Percent change from 2018: 23.9% 2019 non-U.S. revenue: $0.3 million Percent from outside U.S.: 0.9% 2019 worldwide revenue: $34.5 million U.S. employees: 85

The Link Group executes research for Fortune 500 firms in the healthcare, retail, CPG and finance industries across both qualitative and quantitative methodologies and around the globe. TLG attributes its success to its core business philosophy: smarter research and better service. Its commitment to smarter research has allowed the company to take a creative, custom approach to its clients’ business needs that results in actionable and insightful reports. TLG delivers better service by maintaining a consistent research team across projects, allowing the team to anticipate and respond to client needs. This business philosophy has resulted in 99% of revenue coming from repeat clients.

This past year, TLG has continued to hone its research approaches to help elevate traditional research methods. For its messaging and positioning work, TLG developed a framework that triangulates quantitative survey data to determine how well messaging concepts will activate, communicate and engage the customer. In its segmentation studies, TLG blends science and art to create models that align with the client’s brand strategic vision by creating differences that are meaningful and actionable from a marketing perspective. TLG has leveraged its knowledge of behavioral economics to develop a validated, proprietary quantitative methodology—LinkEQ—that allows the company to reveal latent emotional associations.

Founded: 1983 2019 U.S. revenue: $34.3 million Percent change from 2018: -1.2% 2019 non-U.S. revenue: $1.2 million Percent from outside U.S.: 3.4% 2019 worldwide revenue: $35.5 million U.S. employees: 233

SSRS is a full-service market and survey research firm led by a core of dedicated professionals with advanced degrees in the social sciences. 

SSRS surveys support numerous media and academic partners looking to report on public attitudes and beliefs about a wide range of salient issues such as elections and public policy. SSRS is the polling partner for CNN, and conducts public opinion polling for ABC News, The Washington Post, Politico and CBS News. 

Beyond national polls, SSRS regularly conducts research at a state level, and among subpopulations such as Latinos and political partisans, and specializes in reaching hard-to-reach and low-incidence populations. SSRS has extensive experience in public policy, public affairs and health policy research. Since the Affordable Care Act was signed into law, SSRS has completed numerous studies surrounding its implementation and assessing Americans’ attitudes and experiences with the law. 

Since 2016, SSRS conducts the monthly Kaiser Family Foundation Health Tracking Poll. SSRS is well-known for its weekly telephone Omnibus poll. The firm also offers the SSRS Opinion Panel, which allows clients to conduct probabilistic surveys quickly at low cost. The SSRS/Luker on Trends Sports Poll is the first and longest-running tracking study focusing on sports in the U.S. 

37. BVA Group **

Founded: 1970 2019 U.S. revenue: $36 million Percent change from 2018: 2.6% 2019 non-U.S. revenue: $147 million Percent from outside U.S.: 80.3% 2019 worldwide revenue: $183 million U.S. employees: 120

BVA Group is a fast-growing research and consulting firm, an expert in behavioral science, ranked in the top 20 worldwide agencies. BVA brings data to life and converts deep understanding of customers and citizens into behavior change strategies. BVA operates both for public and private clients with methodologies fueled by data science and behavioral science. 

Its FMCG specialist—PRS IN VIVO—is a global leader in packaging and shopper research. PRS IN VIVO helps consumer marketers to succeed through: 

• In-store and online studies to better understand shopper behavior, in both physical and e-commerce shopping contexts.
• Qualitative studies to develop, screen and refine new product, packaging and merchandising concepts.
• Quantitative studies to pre-test and quantify new packaging, merchandising and display systems (for physical stores and e-commerce).
• Volume forecasting and product testing for both innovations and brand restages.
• “Nudge” initiatives to facilitate behavioral change, create new consumer habits and drive category growth. 

BVA Group is a European leader in customer experience research. More than 100 leading brands use BVA’s behavioral insights to provide seamless shopper journeys and design successful new products and services, including solutions from its multi-awarded Global Nudge-Unit.

36. radius | illumination

Founded: 1960 2019 U.S. revenue: $42 million Percent change from 2018: — 2019 non-U.S. revenue: $1 million Percent from outside U.S.: 2.3% 2019 worldwide revenue: $43 million U.S. employees: 127

Radius│illumination is the product of a merger between Radius Global Market Research and Illumination Research in 2018. Together, it’s one of the largest independent custom insights providers in the world. Its focus is on guiding brands at critical points along their growth journey, tackling issues such as identifying compelling innovations, creating relevant customer segmentations and developing strategies for deeper loyalty and engagement.

Radius | illumination partners with Fortune 500 leaders as well as challenger, disruptor and emerging brands in the U.S., Europe, Asia and the Middle East. Its top sectors include financial services, personal care, healthcare and pharmaceuticals, technology, home improvement and durables, media and entertainment, packaged foods, beverage, retail and transportation.

Its 2020 initiatives to fuel brand growth for its clients include:

• Provide agile and robust solutions such as InnovationSprint to accelerate new product and service development.
• Increase its information design capabilities so clients can easily take action on the results.
• Focus on driving deeper insights by combining its advanced analytics strength with immersive customer understanding in its designs.
• Expand solutions through the integration of new technologies and behavioral approaches.

35. Market Force **

Founded: 2005 2019 U.S. revenue: $50 million Percent change from 2018: 2% 2019 non-U.S. revenue: $7 million Percent from outside U.S.: 12.3% 2019 worldwide revenue: $57 million U.S. employees: 375

Market Force Information provides location-level customer experience management solutions to protect clients’ brand reputation, delight their customers and make them more money. 

Market Force operates at scale across the globe. Each month, the company:

• Completes more than 100,000 mystery shops.
• Collects, processes and analyzes millions of employee and customer experience surveys.
• Manages more than 100,000 inbound calls to its contact center.
• Hosts more than 1 million user logins on its KnowledgeForce reporting platform.

Market Force’s multi-location solutions provide a robust framework for measuring and improving operational excellence, customer experience and financial KPIs. Measurement channels include mystery shopping, customer experience surveys, contact center calls, social media and employee engagement surveys via the KnowledgeForce technology platform and Eyes:On mobile app. Market Force employs predictive analytics to determine what matters most and the ROI for investing in improvements. The firm takes a dual-headed approach to market research services (e.g., customer segmentation, attitude trial and usage studies and custom research projects) and strategic advisory services to design and implement effective measurement systems and improve performance.

Founded: 1991 2019 U.S. revenue: $52 million Percent change from 2018: 4% 2019 non-U.S. revenue: $6 million Percent from outside U.S.: 10.3% 2019 worldwide revenue: $58 million U.S. employees: 400

As a leading customer experience management firm, SMG helps clients get smarter about their customers and employees to drive changes that boost customer loyalty and improve business performance. SMG combines technology and services to collect, analyze and share feedback and behavioral data, so it’s easier for clients to deliver and activate customer insights across their enterprise.

SMG partners with more than 350 brands around the globe to create better customer and employee experiences, which drive loyalty and performance. SMG uniquely combines technology and insights to help clients listen better, act faster and outperform competitors. SMG is a technology-enabled research firm with a global footprint—evaluating more than 150 million surveys annually, in 50 languages across 125 countries. 

Strategic solutions include omniCXTM, Brand Research and Employee Engagement. SMG’s omniCX solution uses multiple research methodologies in capturing solicited and unsolicited consumer feedback across in-store, online, contact center and social channels. Results are aggregated and reported via smg360TM—a real-time, role-based reporting platform providing access to all customer and related data. 

SMG’s research professionals partner with clients to derive business-changing insights. Within Brand Research, SMG offers traditional brand tracking as well as access to dynamic customer and competitor data through market intelligence tool BrandGeek. Fueled by SurveyMini—SMG’s location-based mobile research app—BrandGeek contains consumer feedback and behavioral data relating to more than 4,500 brands across more than 500,000 locations.

33. Hanover Research

Founded: 2003 2019 U.S. revenue: $52.7 million Percent change from 2018: 14.1% 2019 non-U.S. revenue: $2.6 million Percent from outside U.S.: 4.7% 2019 worldwide revenue: $55.3 million U.S. employees: 358

Hanover Research is a brain trust designed to level the information playing field. Hanover is made up of hundreds of researchers who support thousands of organizational decisions every year. One of the industry’s fastest-growing companies, Hanover attributes this market success to its unique positioning as the only firm that provides tailored research through an annual, fixed-fee model. 

Hanover serves more than 1,000 organizations and companies worldwide from established global organizations, to emerging companies to educational institutions. Hanover’s research informs decisions at any level and across any department capitalizing on the exposure to myriad industries and challenges. 

Founded in 2003, Hanover operates on an annual fixed-fee model, and partnership provides its clients with access to a team of high-caliber researchers, survey experts, analysts and statisticians with diverse skills in market research, information services and analytics. There is no limit on the type of challenge that can be asked for on the quantitative and qualitative approaches Hanover uses to deliver solutions—most of which are very difficult to replicate internally.

Hanover’s custom research services include:

• Secondary research: market segmentation and evaluation; labor and demographic trends and forecasts; vendor and product reviews; best practices reports. 
• Survey: survey design, administration and analysis; open-ended response coding. 
• Qualitative primary research: focus group design and administration; in-depth interview design, outreach, administration and analysis. 
• Data analysis: data segmentation and mining; conjoint analysis; linear regression; descriptive and predictive analytics; data forecasting and modeling. 

32. Directions Research

Founded: 1988 2019 U.S. revenue: $54.2 million Percent change from 2018: 17.8% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $54.2 million U.S. employees: 181

Independently recognized as one of the leading business decision insight firms in the nation, Directions Research combines a highly experienced staff with a unique mix of innovative and proven approaches to answer pressing business issues. Directions and SEEK routinely combine primary and connected data from multiple sources to create holistic and actionable analytic stories for their clients. Through digital dashboards, infographics, written reports and other unique visualizations, the firm communicates its knowledge in a manner that is right for today’s leaders. 

Directions and SEEK excel in innovation, optimization, customer and brand experience, brand strategy, strategic business intelligence and visualization across a wide range of industries. The firm offers B2C and B2B services globally, surveying audiences using a broad selection of data collection techniques and combining those insights with existing client knowledge. Directions’ and SEEK’s staff have an excellent mix of client- and supplier-side experience. The organization allows senior researchers to work with clients on a day-to-day basis.

SEEK (acquired in 2018) is a qualitative insight and innovation consultancy, operating as an independent but connected division of Directions. SEEK empathically connects brands with the humans they serve, transforming the brand-to-consumer relationship into a human-to-human one. The SEEK approach builds brand advocacy for clients with the human-centric approach to innovation, activating empathy as an innate problem-solving capability.

31. Fors Marsh Group (FMG) *

Founded: 2002 2019 U.S. revenue: $57.5 million Percent change from 2018: 22.1% 2019 non-U.S. revenue: — Percent from outside U.S.: — 2019 worldwide revenue: $57.5 million U.S. employees: 263

FMG applies behavioral and data science to improve organizational processes, business solutions and customer experiences. This work is conducted within seven core U.S. markets: health, defense, technology, finance, homeland security, policy and consumer. 

FMG’s work for its clients wins industry and federal awards. FMG has been named as a top market research company by GreenBook and the American Advertising Federation and has been named to the American Marketing Association’s list of top market research companies in the U.S. for five consecutive years. FMG was also a finalist for the American Council for Technology and Industry Advisory Council’s Igniting Innovation 2018 award for creating an innovative e-learning program that improved program awareness and usability for the General Services Administration’s Center for Acquisition Professional Excellence. 

For 2019 and beyond, FMG is focused on continuing this momentum and expanding in important areas. In its human capital practice, FMG is furthering its work in the cybersecurity industry to help the Department of Defense attract top cyber talent and to protect the nation’s infrastructure. FMG is also expanding its efforts in public service recruiting through new partnerships with the U.S. Army, U.S. National Guard and AmeriCorps. The company is proud that its partnership with these institutions will help shape the future of the U.S. For its health division, FMG is leveraging its deep experience in health communications to fight the opioid crisis by reducing stigma and removing barriers that victims face in receiving help—potentially one of the biggest challenges facing America today. 

30. National Research Group (NRG) **

Founded: 1978 2019 U.S. revenue: $59 million Percent change from 2018: 1.7% 2019 non-U.S. revenue: $4 million Percent from outside U.S.: 6.3% 2019 worldwide revenue: $63 million U.S. employees: 200

National Research Group, acquired by Stagwell Media from Nielsen in 2015, is a leading global insights and strategy firm at the intersection of entertainment and technology. Rooted in four decades of industry expertise, the world’s leading marketers turn to NRG for insights into growth and strategy for any content, anywhere, on any device. Working at the confluence of content, culture and technology, NRG offers bold insights for storytellers everywhere. 

Some agencies specialize in qual, others focus on quant—but NRG connects the two disciplines with hybrid teams expert in both modalities. The company is a one-stop, custom consultancy that tailors its approach to solve clients’ biggest challenges. 

The foundation of NRG’s qualitative work is a team of passionate, subject matter experts who connect deeply with consumers in any environment. NRG uses qual to discover the subconscious drivers that fuel our quantitative truths. Its quantitative work is anchored in sophisticated techniques with a focus on agility, creativity and rigor. NRG is method-agnostic and works collaboratively with its clients to solve complex problems in a simple way.

29. Cello Health * **

Founded: 2004 2019 U.S. revenue: $64.5 million Percent change from 2018: 23.3% 2019 non-U.S. revenue: $58.5 million Percent from outside U.S.: 47.6% 2019 worldwide revenue: $123 million U.S. employees: 260

Cello Health consists of four global capabilities that enable the company to offer best-in-class services and an integrated partnership approach to its clients. This unique mix of capabilities, combined with its collaborative approach, results in a unique fusion of expertise, providing powerful advisory and implementation solutions.

• Cello Health Insight is a global marketing research company, providing business intelligence to the healthcare and pharmaceutical sectors. Cello Health Insight specializes in getting to the heart of its clients’ questions, using a large pool of creative and academic resources and providing design of materials and deliverables through a hand-picked project team—selected to best meet the needs of each individual project.
• Cello Health Consulting is the strategic consulting arm of Cello Health, focused on delivering business results by unlocking the potential within organizations, people, assets and brands. Cello Health Consulting works alongside clients to create practical solutions that ensure buy-in and build relationships. 
• Cello Health Communications combines science, strategy and creativity to unlock the potential of brands and assets. Its services underpin differentiated positioning and deliver brand optimization, focusing on multiple areas of development and launch, through commercial maturity.
• Cello Signal is a full-service digital capability bringing impactful messages alive in communications campaigns, content and film.

28. Macromill Group **

Founded: 2000 2019 U.S. revenue: $68.5 million Percent change from 2018: 2.2% 2019 non-U.S. revenue: $260 million Percent from outside U.S.: 79.1% 2019 worldwide revenue: $328.5 million U.S. employees: 275

Macromill Group is a rapidly growing global market research and digital marketing solutions provider bringing together the collective power of its specialist companies to provide innovative data and insights that drive clients’ smarter decisions. Macromill’s industry-leading digital research solutions deliver rapid and cost-effective solutions to the challenges businesses face today. 

The group’s leading business units are Macromill and MetrixLab. Macromill stands at the forefront of innovation, delivering unique marketing solutions. It offers exclusive access to the highest-quality online panels with more than 2 million members. Using its self-developed platform AIRs, Macromill provides full-service online research including automated survey creation and completion, data tabulation and analysis. Today, its business portfolio includes services such as offline quantitative research, mobile research, point-of-service database research (QPR), digital marketing (Accessmill), a DIY survey platform (Questant) and more. 

Metrixlab turns data from online surveys, social media, mobile devices and enterprise systems into valuable business information and actionable consumer insights. This helps leading companies drive product innovation, brand engagement and customer value. Owned and group panels provide expansive access to global respondents in mature and emerging markets. Its teams deliver strategic and tactical decision support by pushing the boundaries of data analysis innovation, combining cutting-edge technology with data science and proven marketing research methodologies. Clients across the globe rely on the company’s hyper-efficient data and insights ecosystem to deliver fast and affordable results.

27. C Space **

Founded: 1999 2019 U.S. revenue: $70 million Percent change from 2018: 2.9% 2019 non-U.S. revenue: $18 million Percent from outside U.S.: 20.5% 2019 worldwide revenue: $88 million U.S. employees: 354

C Space, part of the Interbrand Group, is a global customer agency that marries art and science to create rapid customer insight and business change. 

C Space works with some of the world’s best-known brands—such as Walmart, Samsung, IKEA and more—to build customers into the ways companies work and deliver on customer-inspired growth. By building real, ongoing relationships with customers—online and in-person—brands can stay relevant, deliver superior experiences, launch successful products and build loyalty. Through its “customer as a service” approach of research, consulting and communications, C Space helps businesses minimize risk and maximize growth.

The company integrates customers into the ways its clients work. By bringing stakeholders together around the customer, C Space’s clients create greater clarity and alignment in the actions that will most effectively drive customer growth.

C Space’s customized programs are tailored based on specific business needs and include private online communities, immersive storytelling, data and analytics, activation events, innovation projects and business consulting. C Space continues to invest in its people, existing capabilities like data and analytics, as well as new initiatives.

26. Engine Insights**

Founded: 2004 2019 U.S. revenue: $71 million Percent change from 2018: 4.4% 2019 non-U.S. revenue: $44 million Percent from outside U.S.: 38.3% 2019 worldwide revenue: $115 million U.S. employees: 240

Engine is a new kind of data-driven marketing solutions company. Powered by data, driven by results and guided by people, Engine helps its clients make connections that count—leading to bottom-line growth, an inspired workplace and business transformation. 

Engine Insights (formerly ORC International) connects traditional market research with cutting-edge products to deliver clients a 360-degree view of their customers, employees and markets. Engine’s extended suite of solutions and products are designed to support business growth, from helping clients understand and outperform the competition to operationalizing both survey and behavioral data to identify, attract, engage and retain their audiences.

Engine Insights’ client services and products include custom research and omnibus surveys; customer experience, customer retention and brand engagement studies; and data management and data analytics. 

These services help clients:

• Think beyond products and services to drive business revenue.
• Use insights to inform more relevant messaging and creative.
• Get a complete 360-degree view of their customers.
• Segment audiences for better targeting.
• Develop the perfect product and take it to market.
• Create unique experiences that engage their customers and keep them loyal for a lifetime.
• Build an internal culture that attracts, retains and engages the best talent.

Founded: 1931 2019 U.S. revenue: $71.1 million Percent change from 2018: 9% 2019 non-U.S. revenue: $6.9 million Percent from outside U.S.: 8.8% 2019 worldwide revenue: $78 million U.S. employees: 253

Since 1931, Burke has consistently redefined expectations in the marketing research industry. From segmentation to customer engagement programs, product innovation and brand tracking, Burke prides itself on designing and executing objectives-driven quantitative and qualitative research. Working across a variety of industries, Burke helps its clients gain actionable perspective on their most critical business challenges, providing a range of solutions from agile to integrated strategic decision support.

Today, Burke continues to push the boundaries of what marketing research can be, seamlessly uniting research, strategy and education. Backed by Seed Strategy—its strategic consulting subsidiary—Burke has the capabilities to support its clients throughout every phase of the product or service life cycle, with expertise in strategy, innovation, branding and marketing. In addition, Burke provides comprehensive training on research fundamentals and best practices through the Burke Institute—its dedicated education division and the industry’s leader in research and insights training. Wherever its clients find themselves on the path to success, Burke is uniquely equipped to help them move forward with clarity, confidence and purpose.

Continuing its long tradition of research innovation, Burke recently unveiled two new offerings: Geode|AI, an integrated insights system that analyzes multiple data sources to uncover patterns, relationships and critical insights that are often hidden; and Quantiment, a robust machine-learning solution that jointly extracts richer insights from structured and unstructured data.

24. YouGov *

Founded: 2000 2019 U.S. revenue: $76.8 million Percent change from 2018: 11.8% 2019 non-U.S. revenue: $107.5 million Percent from outside U.S.: 58.3% 2019 worldwide revenue: $184.3 million U.S. employees: 212

YouGov is a global provider of analysis and data generated by consumer panels in 42 markets. Its core offering of opinion data is derived from the proprietary YouGov Global Panel of more than 9 million people. The YouGov Global Panel provides the company with thousands of data points on consumer attitudes, opinions and behavior. YouGov captures these streams of data in the YouGov Cube, its unique connected data library that holds more than 10 years of historic single-source data. In 2019, YouGov panelists completed more than 25 million surveys.

YouGov’s data-led offering supports and improves a wide spectrum of marketing activities of a customer base, including media owners, brands and media agencies. YouGov works with some of the world’s most recognized brands.

Its syndicated data products include the daily brand perception tracker, YouGov BrandIndex and the media planning and segmentation tool YouGov Profiles. Its market-leading YouGov RealTime service provides a fast and cost-effective solution for reaching nationally representative and specialist samples. YouGov’s Custom Research division offers a wide range of quantitative and qualitative research, tailored by sector specialist teams to meet users’ specific requirements. YouGov data is delivered through Crunch, the most advanced analytics tool for research data, combining fast processing with drag-and-drop simplicity. YouGov has a strong record for data accuracy and innovation. 

23. Phoenix Marketing International

Founded: 1999 2019 U.S. revenue: $77 million Percent change from 2018: -3.8% 2019 non-U.S. revenue: $4.5 million Percent from outside U.S.: 5.5% 2019 worldwide revenue: $81.5 million U.S. employees: 343

Global advertising and brand specialist Phoenix Marketing International operates in all major industries, utilizing modern technology, innovative research techniques and customized approaches to help clients elevate their brand, refine their communications and optimize their customer experience. 

With the launch of Phoenix’s AdPi Brand Effect Platform, clients now have access to continuous advertising measurement and performance improvement insights through a single platform, providing the ability to analyze their campaigns at any stage in the advertising life cycle, and the flexibility to draw upon each piece as needed. Through more than 20 years of experience and testing thousands of ads per month, Phoenix developed 19 category-specific ad measurement models that uncover the drivers and creative attributes that explain the “whys” behind an ad’s creative performance, with forward-looking estimates for ad memorability and brand linkage.

Phoenix continues to evolve its CX solution, launching Competitive Customer Experience, a measurement of how consumers perceive their overall experience with a brand, including key touchpoints along the journey. Grounding recent experiences with a client’s brand, competitor brands and non-categorical benchmarking, Phoenix is able to evaluate brand opinion, understand what drives great CX outside of the category, focus on emotional drivers of brand CX, and provide an external view of culture, consistency and brand promises.

22. Concentrix **

Founded: 1983 2019 U.S. revenue: $95 million Percent change from 2018: 11.8% 2019 non-U.S. revenue: $130 million Percent from outside U.S.: 57.8% 2019 worldwide revenue: $225 million U.S. employees: 253

Concentrix is a wholly owned subsidiary of SYNNEX Corp., specializing in technology-enabled customer engagement and improving business performance for clients around the world. With more than 225,000 staff in more than 40 countries, Concentrix provides services to clients in 10 industry verticals: automotive, banking and financial services, insurance, healthcare, technology, consumer electronics, media and communications, retail and e-commerce, travel and transportation, energy and the public sector. 

The Concentrix Voice of the Customer solution combines technology with experience management services provided by its in-house team of hundreds of CX professionals. 

Powered by analytic tools and artificial intelligence, its customer feedback platform ConcentrixCX helps companies listen, analyze and act on omnichannel customer feedback at any point in the customer journey, at scale. Features include data capture and integration, real-time reporting and analytics, and coaching and employee engagement tools. Concentrix continues to invest in enhanced platform functionality—for example, multi-source data expansion of its proprietary text analytics engine, including structured and unstructured customer feedback sources such as surveys, social, messaging, complaints and email. New digital data collection capabilities include a conversational feedback bot and embedded micro-journey surveys. 

Concentrix experience management services range from program management to strategic advisory services and are custom tailored to free clients’ internal teams to focus on transformational impact. Its CX experts specialize in quantitative and qualitative techniques, delivering data-driven insights through solutions such as survey design, relational loyalty research, CX journey analytics, digital channel optimization, customer segmentation, customer effort assessment and integrated CX analytics.

21. Escalent

Founded: 1975 2019 U.S. revenue: $97.1 million Percent change from 2018: -3.4% 2019 non-U.S. revenue: $5.5 million Percent from outside U.S.: 5.4% 2019 worldwide revenue: $102.6 million U.S. employees: 352

Escalent is a human behavior and analytics firm specializing in industries facing disruption. The company transforms data and insights into an understanding of what drives human behavior, and it helps businesses turn those drivers into actions that build brands, enhance customer experiences and inspire product innovation. 

Escalent specializes in automotive and mobility, consumer and retail, energy, financial services, health, technology and telecommunications. Focusing on select industries allows Escalent to function as a trusted business partner who knows the challenges its clients face and understands how to engage their most valuable audiences. 

Escalent has three centers of excellence: Qualitative Research combines emerging technologies, anthropology and ethnography to tap into human insights that reveal real needs and potential; Marketing & Data Sciences combine survey, behavioral, transactional and third-party data to solve tough research challenges; and Insight Communities provides private, online platforms for brands to engage with groups of stakeholders to quickly and easily draw insights.

20. dunnhumby **

Founded: 2001 2019 U.S. revenue: $100 million Percent change from 2018: -3.8% 2019 non-U.S. revenue: $335 million Percent from outside U.S.: 77% 2019 worldwide revenue: $435 million U.S. employees: 230

Dunnhumby is a customer science company that analyzes data and applies insights for almost 1 billion shoppers across the globe to create personalized customer experiences in digital, mobile and retail environments. Its strategic process, proprietary insights and multichannel media capabilities build loyalty with customers to drive competitive advantage and sustained growth for clients. Dunnhumby uses data and science to understand customers, then applies that insight to create personalized experiences that build lasting emotional connections with retailers and brands. It’s a strategy that demonstrates when companies know and treat their customers better than the competition, they earn more than their loyalty—they earn a competitive advantage.

Dunnhumby was established in the U.S. to help retailers and manufacturers put the customer at the heart of their business decisions. Analyzing data from millions of customers across the country, dunnhumby enables clients to use this insight to deliver a better shopping experiences and more relevant marketing to their customers.

By putting best customers at the center of every decision, dunnhumby’s approach delivers measurable value, competitive edge and even more customer data to fuel ongoing optimization, setting clients up for long-term success.

Dunnhumby serves a prestigious list of retailers and manufacturers in grocery, consumer goods, health, beauty, personal care, food service, apparel and advertising, among others. Clients include Tesco, Procter & Gamble, Coca-Cola, Macy’s and PepsiCo.

19. Informa Financial Intelligence**

Founded: 2016 2019 U.S. revenue: $107 million Percent change from 2018: 1.9% 2019 non-U.S. revenue: $36 million Percent from outside U.S.: 25.2% 2019 worldwide revenue: $143 million U.S. employees: 500

Informa Financial Intelligence is a leading provider of business intelligence, market research and expert analysis to the financial industry. The world’s top global financial institutions and banks look to Informa Financial Intelligence for its authority, precision and forward-focused analysis. 

Informa Financial Intelligence consists of key research, analysis and industry experts, such as Informa Research Services, EPFR Global, Informa Global Markets, iMoneyNet, Informa Investment Solutions, eBenchmarkers and Mapa Research.

Informa Financial Intelligence provides fund and wealth managers, traders, insurers, analysts, and investment and retail bankers with the intelligent advantage to make informed decisions, understand past trends, forecast future performance, drive profitability and increase returns.

Because of their strong background in the financial industry, the research teams of Informa Financial Intelligence are highly qualified to help financial institutions with their market research needs. Informa’s researchers are experts in benchmarking studies, competitive intelligence, new product development and usability testing, customer and member satisfaction and loyalty research, brand and advertising awareness research, and mystery shopping services for sales and service quality evaluation, legal and match pair testing, compliance, discrimination and misleading sales practices testing. Informa is considered a leader in the use of market research to limit the risk associated with allegations of discrimination, UDAAP (unfair, deceptive, or abusive acts or practices), predatory lending and misleading sales practices.

18. NRC Health

Founded: 1991 2019 U.S. revenue: $113 million Percent change from 2018: 10.8% 2019 non-U.S. revenue: $3.6 million Percent from outside U.S.: 3.1% 2019 worldwide revenue: $128 million U.S. employees: 448

NRC Health (formerly National Research Corp.) has helped healthcare organizations illuminate and improve the moments that matter to patients, residents, physicians, nurses and staff for more than 38 years. The company offers performance measurement and improvement services to hospitals, healthcare systems, physicians, health plans, senior care organizations, home health agencies and other healthcare organizations. 

NRC Health solutions help organizations stay at the forefront of healthcare by understanding the totality of healthcare consumer and staff experiences. Primary solutions include: 

• Experience solutions capture personal experiences, while delivering insights to power a new benchmark: n=1. Developing a longitudinal profile of customers’ healthcare wants and needs allows for organizational improvement, increased provider and staff engagement, loyal relationships and personal well-being. 
• The Loyalty Index, composed of seven aspects that combine to provide a 360-degree view of healthcare consumer loyalty—a single, trackable metric to identify emerging trends in consumer behavior and benchmark against peers. 
• Market Insights is a large U.S. consumer database that gives partners access to the opinions of 310,000 healthcare consumers in 300 markets, and access to resources to better understand target audiences and gauge consumer response to communications.
• The Transparency solution calculates star ratings from existing patient, resident and family survey data, and publishes those ratings to organizations’ websites. 
• The Governance Institute supports the efforts of healthcare boards across the nation—to lead stronger organizations and build healthier communities. NRC Health partners with organizations to improve governance efficiency and effective decision-making by providing trusted, independent information, tools and resources to board members, executives and physician leaders. 

17. MaritzCX **

Founded: 1973 2019 U.S. revenue: $118 million Percent change from 2018: — 2019 non-U.S. revenue: $44 million Percent from outside U.S.: 27.2% 2019 worldwide revenue: $162 million U.S. employees: 600

MaritzCX is a software and research company that focuses on customer experience management for big business. The company offers a unique combination of award-winning CX software, industry-leading data and research science, deep vertical market expertise and managed program services. MaritzCX provides a full-service professional CX approach designed to continuously improve the customer experience across an enterprise’s customers, employees, prospects and partners. 

MaritzCX’s research insights include its leading CXStandards competitive benchmarking research that delivers quarterly benchmarks for 55 CX categories across 16 industries. Its CXEvolution study of more than 10,000 practitioners’ feedback informed large enterprises of their CX gaps. 

The company’s focus is to leverage the MaritzCX platform, its industry-leading studies and research services to drive more meaningful experiences between its clients and their customers by adding product and research services and continued thought leadership in the CX market. In addition, MaritzCX has received CMS-certification for HCAHPS surveys, becoming the industry’s first CX platform company to offer an inclusive CX-based patient experience platform.

MaritzCX specializes in solutions for key industries, including automotive, financial services, retail, technology, B2B and more. Its global reach includes more than 900 full-time employees and 800-plus part-time or contract employees in 19 offices around the world. MaritzCX provides solutions to more than 500 clients and 1.6 million users who speak 72 languages in 100 countries. MaritzCX is committed to being its clients’ customer experience research partners.

In March 2020, InMoment acquired MaritzCX.

16. DRG (Decision Resources Group) **

Founded: 1990 2019 U.S. revenue: $140 million Percent change from 2018: 2.2% 2019 non-U.S. revenue: $53 million Percent from outside U.S.: 27.5% 2019 worldwide revenue: $193 million U.S. employees: 399

DRG, the Health Science & Analytics Division of Piramal Enterprises, is a global information and technology services company that provides proprietary data and solutions to the healthcare industry. DRG has brought together best-in-class companies to provide end-to-end solutions to complex challenges in healthcare. DRG reframes these challenges, enabling its customers to see the opportunities. Pharmaceutical, biotechnology, medical technology and managed care companies rely on this analysis and data to make informed decisions critical to their success.

Framing the current status and future trends in target healthcare markets using data, primary research and secondary research is a core competency of DRG. Product offerings include high‐value analytics, syndicated research, proprietary databases, decision support tools and advisory services.

DRG has a number of key specialties, including syndicated research focused on new therapeutic opportunities; portfolio planning, changing industry dynamics and global treatment patterns; insights and data on physician and consumer healthcare e‐marketing; and proprietary databases and analytics covering more than 90% of the U.S. managed care markets. 

15. Wood Mackenzie **

Founded: 1973 2019 U.S. revenue: $150 million Percent change from 2018: 3.4% 2019 non-U.S. revenue: $335 million Percent from outside U.S.: 69.1% 2019 worldwide revenue: $485 million U.S. employees: 337

Wood Mackenzie, a Verisk business, is a leading research and consultancy business for the global energy, chemicals, metals and mining industries. Wood Mackenzie launched in 1923 as a small, relatively unknown, Edinburgh, Scotland-based stockbroker. By the 1970s, it had become one of the top three stockbrokers in the UK, renowned for the quality of its equity research. 

Its success has always been underpinned by the clear and simple principle of providing trusted research and advice that would make a difference to clients. This was true when the first oil report was published by its equity analysts in 1973 and remains just as relevant to it today. So much so that, over the past four decades, Wood Mackenzie has drawn upon its heritage to create a global research and consultancy business that has grown alongside the needs of its clients. 

Having cultivated deep expertise in upstream oil and gas, Wood Mackenzie has carefully broadened its focus to deliver the same level of detailed insight for every interconnected sector of the energy, chemicals, metals and mining industries it now serves around the world. But heritage is more than just history. Its expert analysts and consultants have connected the company to some of the most significant events of our time—creating insight for governments, boards and CEOs who have helped shape the future direction of the world’s natural resources industries and their impact on society. 

14. Material *

Founded: 1973 2019 U.S. revenue: $166.7 million Percent change from 2018: 0.3% 2019 non-U.S. revenue: $57.9 million Percent from outside U.S.: 25.8% 2019 worldwide revenue: $224.6 million U.S. employees: 1,038

In 2019, Material (under the name LRW Group) acquired five companies: Killer Visual Strategies, an award-winning visual communication agency based in Seattle; Greenberg Strategy, a Bay Area research and strategy consultancy with a strong presence in the tech community; Karma Agency, a strategic communications firm based in Philadelphia; Salt Branding, a Bay Area consultancy; and T3, an Austin, Texas-based digital marketing agency. This year, Material is taking steps to unify these companies under one brand, integrating their services and building a collaboration that will provide seamless, end-to-end marketing solutions for clients. This year, LRW Group rebranded as Material, formally integrating 10 companies into one modern, unified offering.

Material is a radical collaboration of the top research and analytics firms seamlessly paired with the most creative and strategic marketing agencies, all with the shared mission of igniting growth for the world’s top B2B and B2C brands, from Fortune 500 companies to disruptive start-ups. Material offers a full range of marketing services—from data analytics and insights, to consulting and strategy development, to customer experience programs and creative executions. Material employs a roster of 1,200 strategists, creators, technologists, designers, researchers and storytellers that work side-by-side with clients to solve modern-day problems, build customer loyalty and make an impact on the world around us.

Founded: 1969 2019 U.S. revenue: $173.7 million Percent change from 2018: 0.5% 2019 non-U.S. revenue: $52.6 million Percent from outside U.S.: 23.2% 2019 worldwide revenue: $226.3 million U.S. employees: 5,311

ICF is a global consulting services provider with more than 7,000 professionals focused on making big things possible for its commercial and government clients in the U.S., Europe and Asia. 

Clients work with ICF on issues that matter profoundly to their success, whether it’s a product or program that matters to the business or a social issue or policy that matters to the world. ICF offers comprehensive survey research services that empower clients to gain valuable and actionable insights on issues that matter. 

For more than 40 years, ICF has demonstrated design, methodological and statistical knowledge through the implementation of large and complex survey research projects. Its clients consist of U.S. federal, state and local agencies, universities, nonprofits and commercial organizations. 

Its survey research services include: 

• Analyzing, reporting and presenting findings.
• Conducting surveys through a variety of data collection methods. 
• Designing samples, data collection protocols and instruments.
• Protecting all processes and data through quality assurance and system security.

ICF recently completed the installation of a state-of-the-art, fully integrated and security-enhanced data collection system, allowing the company to securely and most efficiently collect survey research data across all modes. ICF continues to be dedicated to solving the world’s most complex challenges and tackle problems with ingenuity on issues that matter profoundly to its clients.

12. J.D. Power **

Founded: 1968 2019 U.S. revenue: $217 million Percent change from 2018: 3.3% 2019 non-U.S. revenue: $113 million Percent from outside U.S.: 34.2% 2019 worldwide revenue: $330 million U.S. employees: 744

J.D. Power is a global leader in consumer insights, advisory services and data and analytics. Those capabilities enable J.D. Power to help its clients drive customer satisfaction, growth and profitability. J.D. Power offers market research, forecasting, consulting, training and consumer surveys of product and service quality, customer satisfaction and buyer behavior. The company’s independent industry benchmark studies, innovative data and analytics products, and customized advisory services provide insights and help companies improve quality, engagement and business performance.

Annual syndicated studies are based on survey responses from millions of consumers and business customers worldwide. The firm does not review, judge or test products and services for its syndicated studies. It relies on the opinions and perspectives of consumers who have used the products and services being rated. 

J.D. Power is most often recognized for its work in the automotive industry, where its metrics have become the industry standard for measuring product quality and customer satisfaction. A team of associates worldwide conducts quality and customer satisfaction research across industries including automotive, financial services, insurance, telecommunications, travel, healthcare utilities and consumer electronics. 

11. Forrester Research Services **

Founded: 1983 2019 U.S. revenue: $233.7 million Percent change from 2018: 32.9% 2019 non-U.S. revenue: $65 million Percent from outside U.S.: 21.8% 2019 worldwide revenue: $298.7 million U.S. employees: 525

Forrester Research Services is the research component of Forrester, one of the most influential research and advisory firms in the world. Forrester works with business and technology leaders to develop customer-obsessed strategies that drive growth. Its unique insights are grounded in annual surveys of more than 675,000 consumers and business leaders worldwide, rigorous and objective methodologies, and the shared wisdom of its most innovative clients. 

Forrester’s research offerings consist of a library of cross-linked documents that interconnect its playbooks, reports, data, product rankings, best practices, evaluation tools and research archives. Research access is provided through role-based websites that facilitate client access to research and tools that are most relevant to their professional roles, including community tools that allow interaction between and among clients and analysts.

Forrester’s research and decision tools enable clients to better anticipate and capitalize on the disruptive forces affecting their businesses and organizations, providing insights and frameworks to drive growth in a complex and dynamic market. 

Founded: 1934 2019 U.S. revenue: $320 million Percent change from 2018: 3.2% 2019 non-U.S. revenue: $1,280 million Percent from outside U.S.: 80% 2019 worldwide revenue: $1,600 million U.S. employees: 860

GfK connects data and science. Innovative research solutions provide answers for key business questions around consumers, markets, brands and media—now and in the future. As a research and analytics partner, GfK promises its clients all over the world “Growth from knowledge.” 

The increasing speed of product innovation, the rise of new channels and emerging customer needs are all part of business today. GfK’s clients are businesses around the globe. To make the best possible business decisions every day, they need more than purely descriptive data—they require actionable recommendations based on advanced analytics and powered by leading-edge technology. GfK is in the unique position to leverage proprietary and third-party data to create indispensable predictive market and consumer insights and recommendations.

GfK’s industry focus provides its market researchers with a thorough understanding of business issues and questions specific to their concerns. Industries covered include automotive, consumer goods, fashion and lifestyle, media and entertainment, retail, technology, and travel and hospitality.

9. comScore * **

Founded: 1999 2019 U.S. revenue: $336.1 million Percent change from 2018: -6.5% 2019 non-U.S. revenue: $52.5 million Percent from outside U.S.: 13.5% 2019 worldwide revenue: $388.6 million U.S. employees: 870

ComScore is a global information and analytics company that measures advertising, content and the consumer audiences of each across media platforms. ComScore creates its products using a global data platform that combines information on digital platforms (smartphones, tablets and computers), television and movie screens with demographics and other descriptive information. 

ComScore has developed proprietary data science that enables measurement of person-level and household-level audiences, removing duplicated viewing across devices and over time. This combination of data and methods enables a common standard for buyers and sellers to transact on advertising. This helps companies across the media ecosystem better understand and monetize their audiences and develop marketing plans and products to more efficiently and effectively reach those audiences. ComScore’s ability to unify behavioral and other descriptive data enables it to provide audience ratings, advertising verification and granular consumer segments that describe hundreds of millions of consumers. 

ComScore offers several solutions to help advertisers maximize cross-platform marketing effectiveness—be it measuring brand impact, viewability or ad and audience delivery validation—as well as power cross-platform advertising for better targeting and stronger advertising ROI. ComScore Advanced Audience segments go beyond age and gender to help advertisers better target consumers based on lifestyles, behaviors, demographics and interests. ComScore pioneered this concept in digital, local and national TV. 

8. The NPD Group

Founded: 1966 2019 U.S. revenue: $339.5 million Percent change from 2018: 8.6% 2019 non-U.S. revenue: $104.5 million Percent from outside U.S.: 23.5% 2019 worldwide revenue: $444 million U.S. employees: 1,185

NPD’s global information and advisory services help the world’s leading brands achieve data-driven growth. NPD combines data, industry expertise and prescriptive analytics across more than 20 industries to help its clients measure markets, predict trends and improve performance.

NPD syndicated services include retail tracking, distributor tracking and consumer tracking. NPD offers weekly data, store-level enabled data for looking at geographies or custom store groupings and account-level information for participating retailers. Point-of-sale data is collected from more than 600,000 doors worldwide, plus e-commerce and mobile platforms. Consumer information is collected via online surveys and NPD’s Checkout service, which uses receipt harvesting to track and analyze purchasing and behavior. Prescriptive analytics include market forecasting, new product forecasting, pricing and promotion evaluation and segmentation. 

With deep expertise in more than 20 industries, NPD provides thought leadership to the C-suites of many of the world’s leading brands. Senior industry advisors are available for strategy sessions to guide long-range planning or address specific needs, such as preparing for earnings calls. Topics include industry and category performance, the state of retail and winning strategies of best-in-class companies.

7. Westat **

Founded: 1963 2019 U.S. revenue: $590 million Percent change from 2018: 3.5% 2019 non-U.S. revenue: $7 million Percent from outside U.S.: 1.2% 2019 worldwide revenue: $597 million U.S. employees: 1,900

Westat is a 100% employee-owned research and professional services company. Westat provides extensive survey design and operations capabilities in support of modern data collection from households, institutions, businesses and individuals. Westat applies multiple modes of data collection and survey management to achieve maximum response rates.

The company’s focus areas and capabilities include: 

• Statistical analysis and methodological research in survey design, experiments and testing, data science and analytics, statistical disclosure control and qualitative research.
• Program, process and outcome evaluation using diverse methodologies from design to implementation to guide each program to success.
• Health research, including behavioral and mental health, clinical studies and clinical trials, public and international health, healthcare delivery, patient safety and health communications campaigns.
• Social policy research and technical assistance for implementing innovative evaluation, quality improvement and service delivery systems.
• Education programs for supporting teachers, conducting evaluations and providing technical assistance.
• Transportation studies of travel behaviors, safety and human factors using advanced technologies such as instrumented vehicles and simulators, field observational studies, and online and mobile device-based surveys.

To support its research projects, Westat designs tailor-made approaches for clients as well as invests in many general and specialized IT technologies and products. Westat also provides licensing, training and support for Blaise, a major data collection software system produced by Statistics Netherlands and used internationally. 

Founded: 1975 2019 U.S. revenue: $682 million Percent change from 2018: 16.2% 2019 non-U.S. revenue: $1,685 million Percent from outside U.S.: 71.2% 2019 worldwide revenue: $2,367 million U.S. employees: 2,025

Ipsos, through its subsidiaries, engages in collecting, processing and delivering survey data for brands, companies and institutions primarily in Europe, the Middle East, Africa, the Americas and Asia Pacific. It explores market potential and market trends, tests products and advertising, helps clients build long-term relationships with customers, studies audiences and their perceptions of various media and measures public opinion trends. Ipsos offers advertising research services, including advertising tracking and brand equity evaluation services that help advertisers in the development, evaluation and improvement of their advertising efforts.

It also provides marketing research services that help clients to identify business opportunities and innovation platforms, develop strategies at point of sale, generate insights and ideas, develop and optimize their mix, and model and forecast sales volumes, as well as offers custom innovative products and solutions to address stakeholder experience and brand-building business goals.

In this unique year, Ipsos has remained strong and reaffirmed its ambition and sense of purpose to deliver reliable information for a true understanding of society, markets and people. Ipsos activates this vision for more than 5,000 customers through its presence in 90 markets both globally and locally. Ipsos covers the whole information production and analysis chain, from the collection of raw data to the activation of the insights. It has a solid tradition of innovation expressed by new methodological developments and continuously renewed product range.

5. Information Resources, Inc. (IRI) **

Founded: 1979 2019 U.S. revenue: $815 million Percent change from 2018: 1.9% 2019 non-U.S. revenue: $510 million Percent from outside U.S.: 38.5% 2019 worldwide revenue: $1,325 million U.S. employees: 3,639

IRI is a leading provider of big data, predictive analytics and forward-looking insights that help consumer packaged goods, over-the-counter healthcare organizations, retailers, financial services and media companies grow their businesses. A confluence of major external events—a change in consumer buying habits, big data coming into its own, advanced analytics and personalized consumer activation—is leading to a seismic shift in drivers of success in all industries. With the largest repository of purchase, media, social, causal and loyalty data, all integrated on an on-demand, cloud-based technology platform, IRI is empowering the personalization revolution, helping to guide its more than 5,000 clients around the world in their quest to remain relentlessly relevant, capture market share, connect with consumers, collaborate with key constituents and deliver market-leading growth.

In 2019, IRI announced the integration of artificial intelligence and machine learning into its leading suite of analytics solutions, retained 100% of its major CPG clients and welcomed new strategic partnerships with top retailers in the U.S. IRI added several innovators to its leadership team while continuing to invest in its employees by providing ongoing training. 

4. Kantar **

Founded: 1993 2019 U.S. revenue: $950 million Percent change from 2018: 2.7% 2019 non-U.S. revenue: $2,900 million Percent from outside U.S.: 75.3% 2019 worldwide revenue: $3,850 million U.S. employees: 3,585

Kantar is one of the world’s largest data, insights and consulting companies, bringing together some of the world’s leading research, data and insights expertise. Kantar’s offer covers the breadth of techniques and technologies, from purchase and media data to predicting long-term trends; from neuroscience to exit polls; from large-scale quantitative studies to qualitative research, incorporating ethnography and semiotics. 

In April 2019, all services and offerings of the various Kantar companies were combined under the Kantar brand name. This operational change enables Kantar to build platforms and offers on a global scale and to remove barriers to collaboration and co-creation within the organization to better meet clients’ needs. 

As part of this branding strategy, Kantar launched several initiatives:

• Kantar Marketplace, a global on-demand research and insights store.
• Kantar’s new Brand Guidance System that intelligently integrates validated survey measures with social, search, sales media and behavioral data to provide actionable insights to optimize brand or campaign performance.
• Integration of big data, artificial intelligence and analytical capabilities from across the company into one resource that unlocks deeper insights to fuel growth.

3. Gartner Research **

Founded: 1972 2019 U.S. revenue: $1,800 million Percent change from 2018: 4.7% 2019 non-U.S. revenue: $1,474.5 million Percent from outside U.S.: 45% 2019 worldwide revenue: $3,274.5 million U.S. employees: 4,500

Gartner Research delivers independent, objective advice to leaders across an enterprise through subscription services that include on-demand access to published research content, data and benchmarks, and direct access to a network of approximately 2,300 research experts located around the globe. Gartner Research is the fundamental building block for all Gartner products and services. It combines its proprietary research methodologies with extensive industry and academic relationships to create Gartner products and services that address each role across an enterprise. Gartner’s research agenda is defined by clients’ needs, focusing on the critical issues, opportunities and challenges they face every day. Its proprietary research content, presented in the form of reports, briefings, updates and related tools, is delivered directly to the client’s desktop via its website or product-specific portals.

Within the research segment, Global Technology Sales sells products and services to users and providers of technology, while Global Business Sales sells products and services to all other functional leaders, such as supply chain, marketing, human resources, finance, legal and sales. 

2. IQVIA * **

Founded: 2016 2019 U.S. revenue: $2,220 million Percent change from 2018: 8.6% 2019 non-U.S. revenue: $2,166 million Percent from outside U.S.: 49.4% 2019 worldwide revenue: $4,386 million U.S. employees: 6,000

IQVIA is a global provider of information, innovative technology solutions and contract research services focused on helping healthcare clients find better solutions for patients. Formed through the 2016 merger of Quintiles and IMS Health, IQVIA applies human data science—leveraging the analytic rigor and clarity of data science to the ever-expanding scope of human science—to enable companies to reimagine and develop new approaches to clinical development and commercialization, speed innovation and accelerate improvements in healthcare outcomes. 

IQVIA has three operating segments: Technology & Analytics Solutions, Research & Development Solutions and Contract Sales & Medical Solutions. Powered by the IQVIA CORE, IQVIA delivers unique and actionable insights at the intersection of large-scale analytics, transformative technology and extensive domain expertise, as well as execution capabilities to help biotech, medical device and pharmaceutical companies, medical researchers, government agencies, payers and other healthcare stakeholders tap into a deeper understanding of diseases, human behaviors and scientific advances, in an effort to advance their path toward cures.

IQVIA has one of the largest and most comprehensive collections of healthcare information in the world, which includes more than 800 million comprehensive, longitudinal, non-identified patient records spanning sales, prescription and promotional data, medical claims, electronic medical records, genomics and social media. Its scaled and growing information set contains more than 35 petabytes of proprietary data sourced from more than 150,000 data suppliers and covering more than 1 million data feeds globally. Based on this data, IQVIA delivers information and insights on more than 85% of the world’s pharmaceuticals, helping its clients run their organizations more efficiently and make better decisions to improve their clinical, commercial and financial performance. 

1. Nielsen **

Founded: 1923 2019 U.S. revenue: $3,875 million Percent change from 2018: 1.6% 2019 non-U.S. revenue: $2,623 million Percent from outside U.S.: 40.4% 2019 worldwide revenue: $6,498 million U.S. employees: 10,300

Nielsen is a global measurement and data analytics company that provides a complete and trusted view of consumers and markets worldwide. Nielsen is divided into two business units: Nielsen Global Media and Nielsen Global Connect. 

Nielsen Global Media provides media and advertising clients with unbiased and reliable metrics that create the shared understanding of the industry required for markets to function, enabling its clients to grow and succeed across the $600 billion global advertising market. Nielsen Global Media helps clients define exactly who they want to reach and optimize the outcomes they can achieve. The company’s cross-platform measurement strategy brings together the best of TV and digital measurement to ensure a more functional marketplace for the industry.

Nielsen Global Connect provides consumer packaged goods manufacturers and retailers with accurate, actionable information and a complete picture of the complex and changing marketplace that brands need to innovate and grow their businesses. Nielsen Global Connect provides data and builds tools that use predictive models to turn observations in the marketplace into business decisions and winning solutions. The business’ data and insights, combined with its open, cloud-native measurement and analytics platform that democratizes the power of data, continue to provide an essential foundation that makes markets possible in the rapidly evolving world of commerce. With Nielsen Global Connect’s set of guiding truths, businesses have the tools to create new opportunities.

* ‘% change’ calculation reflects adjustment of previously reported 2018 U.S. research revenue due to acquisition or divestiture activity or other business change during 2019.

** Some or all figures are not made available by this company so instead are based on research and estimation by the report author.

Diane Bowers is a consultant to research and data analytics businesses and industry associations in the U.S. and internationally. She previously served as the president of CASRO, board chair of the Global Research Business Network, a board member of the Americas Research Industry Alliance and a board member of The Roper Center for Public Opinion Research at Cornell University. She is also a past president of the Market Research Council and the Research Industry Coalition, and a long-time member of American Association for Public Opinion Research, AMA and ESOMAR.

By continuing to use this site, you accept the use of cookies, pixels and other technology that allows us to understand our users better and offer you tailored content. You can learn more about our privacy policy here

Where to Get the Best Stock Research

Forget Wall Street’s calls. We tell you which newsletters and Web sites are the most helpful.

• Newsletter sign up Newsletter

Unless picking stocks is your full-time job, you can probably use some help finding attractive opportunities or getting a feel for what makes a company tick. But with everyone from Jim Cramer to your broker vying for your attention, you face a surfeit of options.

How to Be a Better Stock Investor

As with choosing an adviser, the key to finding good stock research is to identify an outfit that shares your investment philosophy, says Robert Stammers, director of investor education for the CFA Institute, which administers the chartered financial analyst designation. “You’re using them to reduce time and effort, so you need to find someone who thinks the same way and asks the same questions you do.” Here are our reviews of a few sources you may be considering.

Wall Street Research

This is also called sell-side research because it’s produced by investment banks, which sell securities to clients. In general, you should disregard the “buy,” “sell” and “hold” ratings of sell-side analysts. Their compensation is often tied to the fees their firms earn for trades on stocks an analyst covers (the hotter a stock, the more clients want to trade it). Plus, analysts often follow their employer’s investment-banking clients. Those considerations may lead to unwarranted bullishness or cause an analyst to pull his punches when the facts might otherwise dictate a bleaker view.

Subscribe to Kiplinger’s Personal Finance

Be a smarter, better informed investor.

Sign up for Kiplinger’s Free E-Newsletters

Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.

Profit and prosper with the best of expert advice - straight to your e-mail.

But analysts’ profit estimates are helpful when figuring a stock’s price-earnings ratio. Moreover, revisions to estimates can provide an indicator of how informed players see a company’s business prospects changing. You can find data on estimates free at Yahoo Finance .

Independent Research

This category includes firms that offer access to their reports on a subscription basis or through discount brokers. S&P Capital IQ , formerly known as Standard & Poor’s, tracks 1,600 stocks. Its reports reach some 20 million people, including clients of many discount brokers. S&P analysts seek companies with strong growth prospects that also trade for meaningful discounts to the analysts’ price targets, says Stephen Biggar, S&P Capital IQ’s global director of stock research. “We try to provide the basis for our opinion in a way that leaves the reader with a good understanding of the company,” he says.

Reports from Argus Research are also ubiquitous among discount brokers. Rather than boil the ocean, Argus focuses on 450 U.S. stocks, including the largest 200 companies by market value and about 250 stocks “that clients are asking about,” such as Facebook and LinkedIn , says president John Eade. Analysts use a six-step process that begins by examining the outlook for the economy and a firm’s industry. They then study a firm’s business model, financial strength and management, analyze the risks and conclude by looking at a stock’s price.

A premium subscription to Morningstar gets you access to reports on 1,800 companies. In the spirit of Warren Buffett , Morningstar’s analysts favor com­panies with a wide “moat,” or defensible advantage, and stocks that sell at a discount to a firm’s true worth, which they estimate by forecasting future cash flows. Morningstar says that since it started rating stocks in June 2002 through July 31, wide-moat companies with “buy” ratings returned 17.8% a year, compared with 5.6% for Standard & Poor’s 500-stock index. Among stocks fitting the bill today are Cisco Systems , Martin Marietta Materials and Western Union.

For a quick study, it’s hard to top the Value Line Investment Survey , which reduces its analysts’ research on about 1,700 stocks down to one-page summaries that contain a dazzling array of numbers and succinct commentary. In addition to offering its analysts’ opinions, Value Line spits out Time­liness Rankings, which factor in earnings trends and stock-price movements. The top 100 names represent Value Line’s best ideas for stock-price results over the next six to 12 months. Over the past decade, the top picks gained an average of 3.6% annualized.

Newsletters

Mark Hulbert, who produces the Hulbert Financial Digest, has been tracking investing newsletters for decades. Among the 180 letters he follows, The Prudent Speculator is a top pick for long-term perform­ance. Its recommendations have returned 10.6% annualized over the past ten years. John Buckingham, who also manages the Al Frank Fund, edits Speculator. He assumed the solo lead role at the fund and the newsletter when founder Al Frank died in 2002. Buckingham looks for stocks that are cheap according to such measures as price to earnings, sales and book value (assets minus liabilities).

Hulbert also maintains an honor roll of newsletters that have produced above-average returns in both bull and bear markets for more than ten years. Investor Advisory Service is the top performer since Hulbert created the list in 1998; it has returned 10.2% annualized over the past ten years, compared with 6.3% annualized for the S&P 500.

The newsletter is published by ICLUBcentral, which also sells stock analysis software to investment clubs, but its analysis comes from Seger-Elvekrog, a money manager based in Novi, Mich., that oversees about $300 million. Scott Horsburgh, president of Seger-Elvekrog, says his team looks for firms with sustainable, double-digit earnings growth and stocks whose P/Es are below their long-term average P/Es. The aim is to pick stocks that can double in five years. “We look often and buy seldom,” he says.

Another top performer on Hulbert’s honor roll is Zacks Premium. The letter’s strategy is based on research by CEO Leonard Zacks, who found 30 years ago that stocks tended to perform well when analysts raised earnings estimates for the underlying companies and typically performed poorly when analysts trimmed profit forecasts. In addition, when quarterly earnings top or trail estimates, the trend is likely to repeat in the next quarter, causing the stock to rise when profits beat estimates or fall when they lag them. Zacks Investment Research’s 85 analysts bird-dog brokerage analysts’ estimates and earnings surprises to produce a portfolio of up to 100 stocks. The letter’s picks returned 9.7% annualized over the past ten years.

Web Resources

David Jackson, founder and CEO of Seeking Alpha , says too many sources of stock research underestimate the intelligence of their readers by assuming their audience needs to be told what to think. “There are always two sides to any stock story,” he says. “There are bulls and bears.” His Web site tries to provide investors with a broad range of perspectives, “so they’re empowered to make up their minds.”

Points of view abound. This is a great place to get a sense of how other investors view a company’s fortes and foibles. Jackson thinks the writing on the site is more compelling than other sources because Seeking Alpha’s authors have real money at stake on the ideas they share (writers must disclose any positions relevant to a post, although the site is limited in how stringently it can enforce this). Seeking Alpha also offers free transcripts of conference calls that company officials hold after releasing quarterly earnings reports. The calls are a great source for getting a sense of the boss’s own expectations.

For the self-directed investor, little can beat the comprehensiveness and depth of Yahoo Finance . Fan Barry Ritholtz, author of The Big Picture blog , says he can still remember the dinosaur age when instead of sailing through a few clicks, investors had to thumb through a physical tome to find analysts’ estimates, biggest shareholders and other facts about a company. “Yahoo Finance has a ridiculous amount of information in one space,” he says. “It’s mind-blowing how much stuff is free.”

Kiplinger's Investing for Income will help you maximize your cash yield under any economic conditions. Subscribe now!

Get Kiplinger Today newsletter — free

Profit and prosper with the best of Kiplinger's advice on investing, taxes, retirement, personal finance and much more. Delivered daily. Enter your email in the box and click Sign Me Up.

The Tax Letter Under Harris's tax proposals, upper-income individuals would pay more taxes, while the middle class and lower-income people would pay less.

By Joy Taylor Published 2 September 24

The Tax Letter We take a look at Donald Trump's tax plans and what they could mean for you. Here's what you need to know.

Markets lost ground on light volume Wednesday as traders keyed on AI bellwether Nvidia earnings after the close.

By Dan Burrows Published 28 August 24

Nvidia stock gained ground ahead of tomorrow's after-the-close earnings event, while Super Micro Computer got hit by a short seller report.

By Karee Venema Published 27 August 24

The Nasdaq Composite and S&P 500 finished in the red as semiconductor stocks struggled.

By Karee Venema Published 26 August 24

Fed Chair Powell's Jackson Hole speech struck a dovish tone which sent stocks soaring Friday.

By Karee Venema Published 23 August 24

Sentiment turned cautious ahead of Fed Chair Powell's highly anticipated speech Friday at the Jackson Hole Economic Symposium.

By Karee Venema Published 22 August 24

Preliminary data from the Bureau of Labor Statistics shows job growth was lower than previously estimated.

By Karee Venema Published 21 August 24

The recent stock market rally ran out of steam Tuesday as sentiment turns cautious ahead of Jackson Hole.

By Karee Venema Published 20 August 24

The Nasdaq also extended its stretch of consecutive gains to eight as Advanced Micro Devices popped on M&A news.

By Karee Venema Published 19 August 24

• Contact Future's experts
• Terms and Conditions
• Privacy Policy
• Cookie Policy
• Advertise with us

Kiplinger is part of Future plc, an international media group and leading digital publisher. Visit our corporate site . © Future US, Inc. Full 7th Floor, 130 West 42nd Street, New York, NY 10036.

Search for a stock to start your analysis

Accurate information on 22,000+ stocks and funds, including all the companies in the S&P500 index. See stock prices, news, financials, forecasts, charts and more.

Top Gainers

Market News

Recent IPOs

Upcoming IPOs

How to Research Stocks: Step-by-Step Guide

Veneta Lusk

Veneta Lusk is a family finance expert and journalist. After becoming debt free, she made it her mission to empower people to get smart about their finances. Her writing and financial expertise have been featured in MSN Money, Debt.com, Yahoo! Finance, Go Banking Rates and The Penny Hoarder. She holds a degree in journalism from the University of North Carolina - Chapel Hill.

Our content is made possible by clients who pay for our smart financial services. Learn more about us here .

Researching stocks can be overwhelming. There's so much information available that you may not know how to get started or where you should focus your attention. This step-by-step guide on how to research stocks will help you understand what matters—and what doesn’t.

Doing research on stocks is much like doing research on a new dishwasher. Only instead of considering colors and whether or not it sounds like an airplane taking off, you're considering how the company is doing financially, if they have strong leadership in place, how their values align with yours, how they make money, and the future projects they have under way. Here's an approach that ensures you fully understand the stock you want to invest in.

Tired of trying to figure out how to invest? Wealthsimple offers state-of-the-art technology, low fees and the kind of personalized, friendly service you might have not thought imaginable from an automated investment service — get started investing in minutes.

Determine how much you're going to invest

Before you do any research on stocks, decide how much you want to invest. One investment strategy is to choose a low-fee, diversified mix of assets like robo-advisors . You could pick individual stocks, but that's a practice that's notoriously risky. If you plan to select stocks yourself and make trades, be warned that you could end up losing everything.

Once you have your core investment strategy in place—and have money left over you don’t mind risking—you may want to invest in stocks. Before you get started, note that investing in stocks should represent a small portion of your overall portfolio—because of the inherent risk associated with tying a lot of money to the fate of a single company.

Decide what you're going to invest in

The next step is to figure out where you want to put your money. Do you want to invest in an industry such as renewable energy? Or would you rather buy stocks in a specific company such as GM Financial or Apple?

Investing in an Exchange Traded Fund (ETF) is one way of achieving diversification. An ETF represents shares from many companies in an industry, spreading the risk and diversifying your investment.

If you’d rather invest in individual companies, however, here’s what you need to consider before buying a company’s stock:

Examine company reports

Publicly traded companies are required to publish reports with information about earnings, net income, and so on. Most companies will have these reports available on their websites.

Look for a section targeted at investors and review those pages for the most recent information. If you have difficulty finding the reports, check EDGAR , which is the U.S. Securities and Exchange Commission’s (SEC) filing database. For reports and documents filed with the Canadian Securities Administrators, check SEDAR , which is short for the System for Electronic Document Analysis and Retrieval.

A company’s reports will tell you how they make money, what risks the business is facing, and the company’s trajectory. Each company may offer several reports for investors to review. Start with the company’s 10-K filing, which is filed annually with the SEC. An independent third party audits the information in this report, which goes back five years.

This comprehensive report will give you an overview of how the company earns money, any issues with management, and current and potential risk factors.

When reviewing the report, here’s what you should consider:

Income Sources : It’s important to understand how the company makes money. Read the management discussion section and analysis to get an overview of income sources.* *

Company Risks : Every company faces risks. The company reports will have a section about the risks for the company and the industry. Also, try to consider potential risks the report doesn’t mention.

Company Trajectory : Review the company’s historical revenues and cash flow. What part of the business is the company investing in? Where is it putting its money in terms of growth? Figure out how they are getting the cash flow and how well it's paid off so far. Review projected payoffs for current and future projects.

Review the financials

Company financials are an important part of the picture. The best place to find this information is the company’s 10-K report, because an independent third party audits the data. The report includes financial data for the past five years and can help you spot trends.

Here are three numbers you should review:

Net income : A company’s net income is an important measure for its profitability. It includes the company’s revenue minus expenses, depreciation, taxes, interest, and so on. It shows if the company had a gain or a loss at the end of the year (or a quarter).

Price-to-earnings (P/E) ratio : This number measures a company’s current share prices against its per-share earnings. The ratio is often calculated using historical data, but it can show future performance. Compare the company’s P/E ratio to others in the industry to determine how it stacks up against the competition.

Return on equity : To calculate a company’s return on equity, divide the net income by the shareholders' equity. This number is important because it shows if the company is using investors’ money effectively to increase profits.

Understand the company’s industry

Before investing in a company’s stock, you need to understand the industry. Is the industry growing or shrinking? Is there anything disrupting it? Consider what opportunities the company has for making money in the industry.

Research the company’s main competitors and how they stack up. Are they better funded? Do they offer a superior product or a lower price point? Consider if the competitors have more talent on their side or other advantages such as patents that give them an edge.

Look at the company's leadership

Without strong leadership at the helm, many companies cannot function well. It’s important to research the leadership team and their plans for the company.

Investigate beyond just the names and basic bios on the company’s website or in reports. Research each member of the leadership team to find out more about their background, management style, and past issues.

Keep an eye for red flags that may not be clear outright. Past troubles for any of the executive officers may signal a rocky future for the company. Make sure you’re comfortable with the company’s management before investing your money in it.

Check how the company's values align with yours

Review the company's mission statement, business practices, and history. Consider what position the company has on current issues in their industry.

Besides the company’s website and materials, read news reports about the company's senior leadership. Do their actions align with the company's public image? How do they handle a crisis? You can learn a lot about a company based on their actions in times of stress.

When you invest in a company’s stock, you’re voting to support its current and past actions. Make sure you’re comfortable supporting a company’s actions before buying a single share of its stock.

Read expert opinions

As part of your research, you can also review expert opinions about the company and the industry. If you do, keep in mind that many analysts are behind the trend and tend to focus on keeping management happy rather than on providing a good analysis.

Don’t use this as your main research strategy, but it can help you fill in knowledge gaps. Take any expert analysis with a grain of salt and do additional research to make sure you have the full picture.

Final thoughts on researching stocks

Before you consider investing in individual stocks, cover your basics with a diversified portfolio, which will produce consistent returns over the long run. If you have leftover money, you can consider investing in individual stocks.

Proceed with caution as you are just as likely to lose your investment as you are to come out ahead. Research each company and industry before buying stocks with your hard-earned dollars.

Ready to invest in stocks? Wealthsimple Trade lets you buy and sell thousands of stocks from your hand-held device using our easy app. No paperwork and unlimited commission-free trades mean you can get started with as little as $1. Get started today in just a few minutes.

Trade stocks commission-free

Discover more about

What is Stock Lending?

By The Editors

Securities lending is a way to make money off of stocks that you already own by loaning them to other investors. Here's how it works.

What is margin

Learn more about how to use margin as a trading strategy, the benefits, and risks.

What is a Put Option?

By Aja McClanahan

A guide to investing in put options: What they are, how they work, how to invest in them, and the difference between a call option and a put option.

Buy and sell stocks commission-free

How to Research Stocks [The Complete Guide for 2024]

Last Updated: February 13, 2024

What Is a Stock

An active or passive investor, know the stock analyses, learn the stock metrics, key takeaways , other relevant factors , tips for quick research.

Do you plan to invest in stocks? Achieving success in the stock market takes a lot of effort. The first step toward such an endeavor is learning how to research stocks. This article discusses what stocks are, analyzes them, and what practical tips you can use to find the best ones.

Stocks or equity represents ownership of a fraction of a company and gives the owner a portion of the company’s assets or shares. When investing in the stock market, knowing how to value a stock is an essential skill.

Investors focus on finding a stock’s intrinsic value, which may not always be the same as its market price. If the intrinsic value is higher than the current market price, investors tend to go long or buy the stock. Otherwise, they tend to stay put or sell the stock to pursue other investment opportunities.

While trading stocks on the stock exchange seems straightforward—buying at low prices and selling at high prices—knowing when and how a stock is valued takes dedication, practice, and precision.

How to Research Stocks

To find out a stock’s valuation, you need first to know what type of investor you are. Then, familiarize yourself with the most common stock analytical methods and stock metrics.

Investors are generally categorized into two distinct types: active and passive. The primary difference between the two is their understanding of how a stock’s price reflects its true or intrinsic value.

Active Investors

They perform stock research to recognize that the current market price does or doesn’t reflect a stock’s true value. They develop and execute strategies based on this assumption—the goal: to outperform the broader market.

An active investor considers a stock as either undervalued or overvalued. Undervalued stocks are typically a buy; their current market prices are lower than their intrinsic value, and investors go long with hopes of selling when their prices go up. Conversely, overvalued stocks are those whose market prices are higher than their true value, and investors tend to sell them to avoid further losses.

Passive Investors

Passive investors regard stock value as reflected on its current market price. They follow the efficient market hypothesis (EMH), which maintains that stock prices are always accurate and all available information is reflected upon such prices. As a result, trying to outperform the market isn’t a viable strategy.

Instead, passive investors prefer to invest in index funds or exchange-traded funds, which track the market’s movements and make investments that mimic them. Followers of the EMH invest in low-cost passive portfolios to generate stable long-term returns.

To learn how to analyze stocks, investors must be familiar with the two main types of stock analysis: fundamental and technical.

Fundamental Analysis

This type of analysis evaluates stocks based on their intrinsic value. Additionally, fundamental investors measure stock performance in the context of macro factors, such as economic growth and company balance sheets. Active investors use fundamental analysis to evaluate the strength of a stock’s specific industry as part of their effort to find its intrinsic value.

When researching stock, fundamental analysts look at a company’s revenue, earnings, future growth, and return on equity. They then try to determine a company’s underlying value by studying the data. Next, they attempt to find stocks that have excellent growth potential. Ultimately, they either buy more of such stocks or hold them for a long time as it continues to grow, a technique that is known as ‘buy-and-hold’.

Technical Analysis

Technical analysis focuses on trends rather than underlying value. Analysts who subscribe to this technique use stock research tools that make identifying patterns easier. The goal is to use a stock’s past trading activity and price changes to predict future price movements.

Generally, technical analysis is used by traders who take advantage of volatility, trading volume, and price movements to generate significant, quick, long-term returns. They use trend stock charts and other tools, such as great robo advisors, to help them generate trading signals or points to make a trade.

Learning how to evaluate a stock also means that you must know about stock metrics. While these are the most common stock value metrics used by investors, you don’t have to use all of them all the time; you have to know which metrics matter.

Price-To-Earnings (P/E) Ratio

The P/E ratio compares the company’s current price to its earnings per share (EPS). This ratio may be helpful to one investor but not to another, depending on their investing approach. Value investors, who focus on underappreciated stocks, prefer low P/E ratios because it means the market’s stock valuation is lower than its intrinsic value. Growth investors, who focus on stock appreciation, prefer high P/E ratios when valuing a stock because they indicate superior earnings over other companies.

Price-To-Growth (P/G) Ratio

This is the P/E ratio divided by the company’s earnings for a specific period, essentially determining the stock’s value while considering its expected earnings growth. Investors use this metric to have a more holistic view of a stock’s value.

Price-To-Book (P/B) Ratio

The P/B ratio compares the company’s market capitalization to its book value (the value of its assets according to its balance sheet). When used to determine stock values, this ratio provides another way of pinpointing undervalued stocks. As such, value investors use it in conjunction with other metrics like a company’s return on equity (ROE).

Debt-To-EBITDA Ratio

The Debt/EBITDA (earnings before interest, tax, depreciation, and amortization) measures a company’s ability to pay its debts. Investors use this metric to have a more precise representation of a company’s actual cash flow.

Price-To-Sales (P/S) Ratio

This ratio gauges how much the broader market values each dollar in a company’s sales. In general, lower P/S ratios are more attractive to investors who research stocks undervalued but have a high potential for quick recovery and growth.

Dividend Yield

A dividend yield shows how much a company pays out in dividends relative to its market price. High dividend yields are generally a good sign of stability in mature companies. But it may also be a sign that a company’s growth has plateaued and isn’t reinvesting in its growth. As such, most investors don’t use dividend yields as a metric on their own.

Value Traps

Value traps are essentially fake buying opportunities in the form of cheaply priced stocks with low valuation metrics. When conducting investing research, it’s essential to avoid value traps. They can be misleading, especially to value investors who are used to seeing a certain valuation of a company’s stock.

Apart from your investment style, analysis approach, and preferred metrics, other relevant factors come into play when using stock valuation techniques.

Competition 

Stocks represent companies, and companies operate in industries with competitors. One cannot ignore the competition factor (or ‘economic float’) when evaluating stocks.

According to Warren Buffett, an economic moat is a distinct advantage by a company that competitors cannot easily copy. A brand, technology, or patent should be difficult to duplicate. Companies with economic moats can effectively protect their market share, market returns, and profitability since other firms cannot imitate what they have.

When conducting investing research, try to find companies with broad economic moats, as they benefit from the following:

• Secure company bottom line
• More significant and sustainable competitive advantage
• Well-known brand name
• Pricing power
• Cost advantages
• Long-term returns
• Economies of scale

Moreover, companies with wide economic moats benefit from network effects, where many people or users improve the value of a service or product. For instance, as more users use social networks and online messaging apps, more features become available, and the overall performance of the product and service improves. With such improvements, companies can secure their competitive advantage and raise their stock worth.

Management 

When researching companies and stocks, internal factors—such as management structure and experience—should also be considered. For example, ask who manages the company and whether they have the appropriate expertise and reputation for leading the business to success.

An excellent management structure can drive up share prices. When investors trust a new CEO, it reflects on stock prices. Stock prices, however, aren’t always an indication of good management. So be wary of high stock prices that may plummet once management decisions fail to make sense—the stock market keeps a watchful eye on company heads.

When studying how to research stocks, you might’ve come across the word ‘trends’, which is used when dabbling in other markets, such as when investing in cryptocurrency or forex. In this context, trends refer to a company’s future price behavior and prospects.

Is the company growing? Are there any indications of poor performance? When it comes to determining stock value, focusing on long-term growth generally is the way to go, especially if you’re a buy-and-hold type of investor. But if you’re a novice, a good stockbroker for beginners can let you in on which companies have excellent long-term growth prospects.

Your research and preferences will also point you to companies focusing on value and stability rather than growth. These companies are generally undervalued but stable, meaning their stocks’ worth doesn’t move a lot but doesn’t suffer from economic downtrends either.

Finding the best stocks to invest in can be overwhelming. But practical tips can make your search easier and more efficient.

Financial News Sites

Websites, such as Investing.com, provide real-time financial market news. These are an invaluable resource if you want to keep up with market trends and events. Websites, such as Investopedia and BabyPips.com, focus on investor education—they’re great when you want to learn how to value a stock quickly.

Online Financial Tools

Online financial tools provide an added layer of accuracy and thoroughness to your evaluations. Crunching numbers and comparing the stock performance of companies are tremendous endeavors, but using online financial tools, such as Robo-advisors, streamlines the process and saves time.

Learning how to know what stocks to buy takes effort, time, and resources. It’s best to know what type of investor you are, what analysis approach suits you, and which metrics to monitor. Analyzing stocks means also studying the businesses behind them, including their long-term prospects and competition—using financial news sites and online tools is excellent for this purpose.

Whether a stock price is good or bad depends on your approach relative to its intrinsic value. If you’re looking for high growth, search for low-priced stocks that have high underlying values. On the flip side, stocks with the lowest prices (penny stocks) are risky investments.

To evaluate stocks before buying, take a holistic approach and determine your overall preference and strategy. For example, consider the stocks’ performance and know which ones will likely give you the best benefits for your overall strategy. And check numerical metrics, such as P/E, P/B, and P/G ratios.

Stocks have value because they give you ownership rights to a company’s shares. They represent a percentage of a company’s market capitalization. Any movement in their prices can affect a company’s value—the main reason why investors are eager to learn how to research stocks.

ABOUT AUTHOR

by Ace Bagtas

I learned a lot about finance after working for a digital marketing company specializing in investing and trading stocks, forex, etc. After that, I got exposed to other verticals such as wealth management and personal finance, which further improved my understanding of the financial world.

Latest from Ace

Related posts.

Top 10 Companies in the Capital Goods Field

Top 20 Companies That Hire Felons in 2024

How Long Does the HireRight Background Check Take?

Second Chance Jobs for Felons: 10 Best Choices!

Does a VPN Work With Spotify? When Do You Need One?

VPN Not Working With Omegle? Try These 5 Easy Solutions!

How to Find Someone’s Tinder Profile? [2024 Expert Guide]

7 Clash of Clans Alternative Games

Which US Banks Offer 5% Savings Accounts?

Candy Crush Saga Alternatives

Leave a Reply Cancel reply

You must be logged in to post a comment.

How to Research Stocks: A Checklist for Stock Analysis

Bonus Material:

Researching stocks and companies can be a daunting task. Where do you start? How do you know what is relevant? This problem is exacerbated by the amount of noise readily available in the financial world. 

Conducting stock analysis is essential if you want to outperform and make money in shares. This article will show you how to research stocks in the UK stock market – this list should be used as a guideline and for ideas for your own investment criteria.

There are lots of variables when it comes to investment research, but here are the main aspects I like to research before investing in a company.

How to research stocks in 15 steps

• Find your stock idea
• Know the market capitalisation
• Analyse the chart of the stock
• Read recent Regulatory News Service (RNS) announcements
• Calculate the stock’s Enterprise Value (EV)
• Calculate the Price-to-Earnings Ratio (PE)
• Study the company’s investor website and AIM Rule 26
• Analyse the stock’s income statement
• Check the stock’s balance sheet
• Understand the stock’s cash flow statement
• Identify the headwinds and tailwinds
• Understand how the company makes money
• Identify the drivers of the business
• Research the company’s competition
• Check the broker forecasts

NOTE: Use the above links to jump to each step.

1. Find your stock idea

The first step to researching an investment is to find an idea. These often come from everyday life, including products and services you use.

One Christmas I got a bluetooth speaker from my parents, which I thought was a great idea. A shame I didn’t check out the stock because the company, Gear4Music, turned out to be a huge multi-bagger.

Peter Lynch, the legendary Magellan fund manager at Fidelity, wrote that he took his children to the mall and gave them money so he could see where they spent it. He would then research the stocks of those companies.

“Behind every stock is a business, find out what it’s doing” – Peter Lynch

Ideas can come from the supermarket and also from your professional life. If you work in the oil and gas industry, it’s likely you’ll be well aware of the industry trends ahead of most other private investors. If you work in a car dealership, then you’re in a prime place to spot changes in the business. 

If you see a shop opening up new units across the region – maybe they want to do a national rollout?

You never know where the next investment idea will come from, but keep your eyes open and you’ll find them.

You can also get ideas from:

• The Regulatory News Service announcements ( Investegate )
• Other investors (but never follow anyone blindly!)
• Filter for stocks (I use SharePad )
• Newsletters ( you can sign up for mine here )
• Company presentations ( PIWorld , Investor Meet Company )

2. Know the market capitalisation of the stock

The first port of call when checking out a stock is to find out the market capitalisation (commonly referred to as market cap).

The market cap of a stock is the company’s equity valuation. This is the value of the company if you were to buy all the outstanding shares in issue.

The calculation for the market cap is simple:

Share price * shares in issue = market capitalisation

The market of the stock will give us an idea of how big the business is and whether it’s a small cap stock, a mid-cap, or a large cap stock. 

I am mostly interested in small-cap stocks, and so stocks above £500m market capitalisation are of a reduced interest to me.

PRO TIP: You can use SharePad to do the heavy lifting for most of these steps.

3. Analyse the chart of the stock

The next step is to check the chart of the stock. This is because I am not interested in stocks where the share price is trending downwards. I enjoy making money in shares and when I buy them I want them to be going up already – buying a stock that is trending downwards is gambling that you are printing the bottom.

Stocks are split into four stages:

• Stage 1: The accumulation phase 
• Stage 2: The advancing phase
• Stage 3: The distribution phase
• Stage 4: The capitulation phase

We want to find stocks that are in stages 1 and 2 because they are actively being accumulated by institutions, and in stage 2 they have up trending share prices. 

Stage 3 is where those same institutions that pushed the stock up are now cashing out of their positions by using the liquidity to unwind. Stage 4 is when the stock has capitulated and is now steadily falling.

My book, Guide to Trading Breakouts, explains the four stages of a stock in greater detail.

Once a stock passes the market cap and chart tests, it’s time to move on and start developing the story.

4. Read recent Regulatory News Service (RNS) announcements 

It’s important to check the recent Regulatory News Service (RNS) announcements to get an idea of the story behind the stock.

You can do this by checking various free websites, including the London Stock Exchange and Investegate . 

I use SharePad because I can colour code RNS announcements which saves me time in the morning when news is released.

The goal of looking at the recent RNS announcements is to understand what has been happening recently. Check the results, or trading statements, and read the narrative. 

It’ll always sound positive, but there are always clues:

• A focus on highlighting revenue or EBITDA growth may mean the business isn’t as profitable as directors would like it to be
• A mention of a ‘step change’ or turnaround could be a lead to dig further
• Recent directorate changes could signal an underperforming board being replaced by new faces

Only by reading the RNS can begin to understand the story and making sense of the share price chart. For example, a profit warning several months ago would explain a gap down in the share price and continued downward slump.

5. Calculate the stock’s Enterprise Value (EV)

If I think the stock is worth investigating based on the RNS announcements, then I will do a quick check on the company’s financial health. The easiest way to do this is to check the company’s EV.

This is done by taking the market cap and adding the debt, then subtracting the cash.

EV = market cap + debt – minus cash

We already know the market cap so we can lift the numbers from the company’s balance sheet, or check SharePad, which calculates it for us automatically.

The EV will tell us whether the company is cash rich or laden with debt. It gives us an idea of the risk of the company.

For example, a company with an EV lower than the market cap has a cash balance which outweighs any debt. A company with a negative EV has net cash higher than its market cap!

If the EV is much higher than the market cap, this tells us that net debt outweighs the market cap by some margin.

6. Calculate the Price-to-Earnings Ratio (PE)

The next step is to find out the Price-to-Earnings ratio of a stock. The PE ratio (sometimes known as PER) is the earnings multiple of the company.

The earnings multiple tells us the multiple of earnings that the stock trades on. For example, a PE ratio of 5 would tell us that the market currently values the stock at a multiple of 5x the company’s earnings per share. 

It also means that – all variables remaining constant – the stock will take 5 years for the company to earn its share price in earnings.

The P/E ratio tells us the sentiment of the stock. For example, a stock rated at 30x earnings is clearly valued highly by the stock market. A company trading on an earnings multiple of 2x shows that the market doesn’t attribute much value to the stock.

However, this doesn’t mean that the market is right. We may wish to check the price/earnings to growth ratio (PEG ratio) which is the stock’s PE ratio divided by the company’s growth rate in earnings per share. 

A fairly valued stock for its growth rate of earnings will give a PEG ratio of 1. Anything above could be considered to be overpriced, and anything below could be considered to be underpriced.

PRO TIP: Use the PEG ratio to take into account the company’s growth in earnings too.

By using the PE ratio and the PEG ratio we get an idea of the market’s valuation of the stock in terms of its earnings, and also the PEG ratio shows us how much we are paying for the growth rate in earnings.

If we are still interested at this point then it’s time to dig deeper into the stock.

7. Study the company’s investor website and AIM Rule 26

AIM Rule 26 stipulates that all AIM listed companies should have a section on the company website that provides specific information. 

The most important parts for us are:

Significant shareholders

• Annual report

We’ll go three each of these three now.

This part of the website will list all shareholders above 3% (and sometimes director shareholdings too). 

I check this because I want to see if the shareholder register has any notable institutions or individuals. I would never recommend following anybody but if you see a fund that consistently backs winners or an individual that keeps cropping up before a share starts to rise it can be worth keeping an eye out.

If institutions aren’t large shareholders then this means this can be a catalyst for the share price to increase in future once the business grows and the shares become attractive.

This section of the website will give us an idea of who is in the stock. We can also check Holdings RNSs to work out when each shareholder crossed the last notifiable threshold on the register.

Anyone that holds above 3% in the stock needs to notify their shareholding to the company. Of course, anyone holding 2.99% does not need to make any disclosure.

AIM Rule 26 is where we make our first assessment of the directors. There will often be a biography section which gives a brief history of the directors and which companies worked out. Some of these will list the universities they went to even though nobody cares. 

The goal here is to find out the following:

• What companies did they work for previously? 
• Were these companies successful?
• What sizes were these companies?
• Were these companies listed?
• How many non-executive directors are there?
• How many other boards do these directors sit on – are they ‘busy’?
• Does the company have entrepreneurial management?

Ideally, we want to get an idea of the directors’ track records. If a director with a history of successful turnarounds is now at the helm that is something that would make me want to research further. But if a loser who shuffles from job to job without achieving much is the chief executive then I’d likely lose interest.

I also want management to be entrepreneurial. If they’re not buying large amounts of stock relative to their salary or net worth, then why should I? 

Entrepreneurial management will also be motivated to find solutions to problems rather than punching the clock at 5pm. Be careful of lifestyle directors, who pay themselves a lot and achieve little in terms of shareholder value creation.

When looking at the chief financial officer (CFO) it’s important to check if they have been at a company of a similar size. We don’t want a CFO that is out of his or her depth and does not have a control on costs. 

We also want to have a look at the non-executive directors. Have they been at companies where they were asleep at the wheel, such as frauds? Do they sit on many other boards? If so – they might be too distracted to accurately do their job.

Annual Report 

The next step is to check the annual report.

The annual report is an underutilised resource. Most private investors don’t take time to read the annual report. This could be because they don’t realise the wealth of information available about the company here or because they are too lazy. But if you’re going to invest your own hard-earned cash in a stock – you owe it to yourself and your family to do your due diligence. 

In the annual report we want to find the:

Chair and chief executive statements

Remuneration report.

• Segmentation for revenue 
• Recognition of risks report

Audit report

These statements will provide a narrative of the company for the period of the annual report. This is where the two directors will write about the positives and negatives of the company, as well as the obligatory thanking of the company’s employees for their hard work. 

What is important here, is to tease out any potential leads to investigate further. For example, investment into a new side of the business may be mentioned. This new side of the business could produce materially significant cash inflows. It’s your job to find out.

Changes in business models and upcoming challenges may also be mentioned. These statements are always worth skimming at least. 

Click CTRL + F and search for “remuneration” and find out what the directors are paying themselves. If salaries are exorbitant and increasing year on year – what does this say? 

If directors have awarded themselves a juicy pay rise despite the business having performed poorly, it may well be that the directors are acting in their own best interests rather than the best interests of the shareholders. This is known as the principal-agent problem.

Unfortunately, many directors use the company as a vehicle for their own purposes and lifestyles. This is what people mean when they refer to a stock as a ‘gravy train’. 

Segmentation of revenue

The next step is to check out the revenue split. This will often be in the financial notes after the financial statements. 

I like to check several things:

• Geographical split
• Breakdown of products and services

The geographical split matters because the company may state that it is growing rapidly in a certain market in an RNS, but what if that market is only 10% of its total revenues? Suddenly, the rapid growth is not that exciting at all.

It’s also important to know because countries can offer certain risks. A gold mining company that is listed in London could be operational anywhere in the world. 

What if most of its revenues come from a country where the government has been known to seize company assets? Is that a risk you feel comfortable taking? Maybe, but it’s better to know about the risk beforehand rather than wake up to find you no longer own an asset you have shares in. 

The breakdown of products and services is important because different business services and products have different gross margins. This means that some company’s offerings are more profitable than others. 

For example, in the leisure and hospitality sector it’s no secret that bars and restaurants make the most money on drinks. As a shareholder you would want to see an increase in high margin wet sales (drinks) rather than lower margin dry sales (food). 

A company may also offer several brands. If one brand makes up 90%+ of the company’s revenue, then that brand’s performance is going to be the key driver of the share price. It’s no different to having 90% of your portfolio in one stock – your performance will be heavily correlated to the performance of that one stock and not the others in the 10% of your portfolio.

Quickly check the audit report to see if there are any red flags. We want to check if the accounts are qualified – qualification refers to the reservations of an auditor over aspects of the accounts. If the accounts are qualified, it may be best to move on.

It’s also worth looking at the name of the auditor. No name is guaranteed protection against fraud, but if the auditing firm is tiny and you have not heard of them, this would warrant some digging. Who are they and have they audited other London-listed companies?

Finally, if the auditor has recently changed, then check out the previous auditor. If they were only there briefly, then this is a potential red flag. Of course, an auditor will never give a negative reason for leaving a company, but no auditor turns down work unless there is a big reason for them not to do so. 

So far, if everything checks out and we’re still interested, then it’s time to move to the income statement.

Download the free ebook now

Enter your email to receive my free “How to Make 6 Figures in Stocks” ebook with everything you need to start investing in UK stocks.

8. Analyse the stock’s income statement

The income statement details the company’s financial performance and tells us how much money it’s making. 

If you’re new, I have written a detailed walkthrough on understanding the income statement for further information.

Key aspects I like to check in the income statement include:

Gross margin

Operating profit and ebit , administrative expenses, share-based payment charges, profit after tax .

Let’s go over these one by one.

Revenue 

You should already have had a brief check up on revenue in the annual report to have an idea of the breakdown, but now we want to look at it properly. 

Did revenue increase? If not, why not? And if not, do you want to be buying shares in a company where revenue is falling?

The best way to increase profits is by increasing revenue. Cutting costs can improve profits, but at some point there are no more costs to cut. There is no limit on how large revenue can grow (of course at some point the market may become saturated and difficult to grow revenue, but this is reserved for real industry heavyweights). 

Ideally, I want to see an increasing and accelerating growth in revenue. Stagnation isn’t welcome. 

Gross margin shows the negotiating power the business has with its purchasers and suppliers and the brand’s strength. Premium brands can attract premium prices. For example, Fever-Tree charges a higher price on its premium mixers than Schweppes or supermarket branded mixers in the same category.

Consumers associate price with value and the brand’s image, and identity reinforces this. A strong brand can be a powerful driver of shareholder returns.

Here’s how to calculate gross margin:

Gross margin = (revenue – cost of sales) / revenue

I like companies with high gross margins because this means the company can significantly increase its profitability by selling more. 

A company with a gross margin in the low single digits would need to increase its turnover a lot more than a company with higher gross margins to achieve the same growth in gross profit.

Operating profit is the measure of profitability that considers all the company’s costs and not just the costs of goods sold (COGS). For example, this includes administrative costs and all the other costs of running the business. 

Operating profit is the measure of profitability that I believe tells me if the company has a viable business model or not. I prefer to use EBIT (Earnings Before Interest and Taxes) as EBIT factors in all the operating costs to get operating profit plus non-operating income and non-operating costs. Therefore, EBIT gives a fuller picture of the company’s profit. 

Operating profit and EBIT will be the same figure if there are no non-operating profits and non-operating costs.

A company with increasing administrative expenses but flat or decreasing revenue or operating profit tells us that the company is good at growing its costs without achieving anything in return.

There may be a good reason for this, but with nearly 2,000 stocks on the London Stock Exchange it’s impossible to do thorough research on every company.

Unless there was a compelling reason for me to do some digging and find out if there is a valid reason for an increase in costs, then I’d lose interest in the stock.

I like to see costs stable. Naturally, as the business grows, then it’s normal for costs to increase and so small rises in costs aren’t a cause for concern. But you should check the growth in costs versus the growth (or lack of it) in revenue and operating profit.

In some cases, I have heard management tell investors to ignore share-based payment charges. You shouldn’t – share-based payment charges have real consequences. Manager and employee share awards and options dilute shareholders, and companies that offer equity in return for goods and services instead of cash also dilute existing shareholders. 

Be careful of management offering themselves lavish options packages as part of their remuneration. In the right way, options can be used as an incentive with incremental strike prices. But often they are given away at nil-cost, which means the beneficiaries receive free shares in the company. This means that any price above 0p will see them retain all the proceeds from the sale.

Excessive share-based payments can seriously upset an investment case if you find that should certain targets be met, a deluge of options kicks in and dilutes your holding. It changes the risk/reward profile on the investment.

Why take all the risk if the management is going to take a large portion of the reward for themselves?  

Profit after tax, or net income, is known as the ‘bottom line’. 

It’s the line that matters because it’s the line that tells us after all business expenses, costs, and tax, if the company is able to make a profit or not. 

I like to see this line be positive which shows the company is profitable. Companies that are not profitable often perform poorly in the long term. 

Sometimes, companies can be approaching the inflection point where they are almost trading profitably and the market re-rates them before profitability is reached. However, this is a riskier strategy as there is never any guarantee of profitability being reached. 

Companies can sometimes report exceptional items that affect profitability, and so in the headline the company may claim “adjusted profit after tax”. 

Sometimes a company can report ‘exceptional’ costs year after year and claim to be profitable despite generating years of losses.

However, the bottom line of the income statement does not go on management waffle and presents the data in a non-subjective manner.

9. Analyse the stock’s balance sheet

The balance sheet shows the company’s financial health at a specific point in time.

Again, if you’re new, I have written a detailed walkthrough on understanding the balance sheet for further information.

Key things I like to check in the balance sheet include:

• The cash balance
• Payables and receivables

Current and non-current liabilities

Nav and ntav, cash balance.

The cash balance is the first port of call to me because a poor cash signal could be a sign that an equity placing is needed. I also check the cash balance of the previous year too and sometimes in the years before. To do that, you’d need to search for the last results for the company, or you can load up SharePad which has several years in one place.

The cash position of a company is easily manipulated. A company can delay paying money it owes for a week to flatter the cash position, hence why it’s best to check the cash position over a period of time. 

Remember, Tesco overstated its profits in the 2014 accounting scandal when it brought revenues forward. However, It kept on doing this more and more aggressively until it eventually unravelled. Assuming the company we are looking at isn’t fraudulent, then checking the cash position over a period of time will take into account any short-term flattering. 

Payables and receivables 

Payables and receives refers to cash the company owes and cash the company is owed. I look at this section as part of a trend.

A growing business is likely going to have both growing payable and growing receivables. But if a company is seeing its payables go down and receivables go up, that means that cash is exiting the business faster than cash is coming in. That could be problematic.

Remember, whilst receivables are an asset, that used can’t be properly put to work until it’s converted into cash on the balance sheet. 

A growth in payables is a good sign because it means that cash is staying longer in the business before it exits. By having others pay the company before the company has to pay out, this means that other businesses are almost financing the business’s working capital. 

A sharp decline in cash and payables, and a big increase in receivables is not a good sign. 

Checking the current and non-current liabilities is another spot check. Current liabilities can come in the form of payables and short-term debt, which need to be paid within that financial period. Non-current liabilities can be bank loans and property loans (mortgages).

It’s useful to check this because a company may have a large amount of debt on the balance sheet, but the repayment date could be either within 12 months or over the next 25 years. Clearly, this makes a difference to the company’s prospects. In the former – it may be that a dilutive placing is needed. Whereas if the company is able to pay the interest and pay down the loan over a series of years comfortably out of cash flow then this is not as problematic.

A quick check of the company’s NAV (Net Asset Value) and NTAV (Net Tangible Asset Value) is necessary to see what the company is worth in real terms.

The NAV takes into account the company’s assets and liabilities and the net sum of these. However, assets can be both tangible and intangible. This presents a problem because a stock with a strong balance sheet can actually be made up of mostly intangible assets, which carries a subjective value. 

NTAV strips out these intangible assets in order to produce a net asset value that only includes tangible assets that can be readily converted into cash.

10. Understand the stock’s cash flow statement

The cash flow statement is the most important financial statement. This is because it shows how cash moves through the business.

Again, if you’re new, I have written a detailed walkthrough on understanding the cash flow statement for further information.

Key things to check on the cash flow statement:

Cash generation or burn from operations

How much the company invests in itself, the financing cash flow statement.

The cash flow of operations part of the cash flow statement tells us whether the company can generate enough cash to self-sustain itself. Cash is the lifeblood of a business and if a company burns too much cash, it will need to dilute shareholders with an equity placing.

It’s useful to start from the top at the profit or loss number and see what has been added back. For example, a company could be unprofitable yet cash generative. Depreciation and amortisation are non-cash costs and so are added back to the P&L. 

If a company can’t generate enough cash to sustain itself, then this is a red flag. Many companies are labelled ‘jam tomorrow’ – the company promises jam but always tomorrow!

The investing cash flow statement shows the capital the company has invested or made from investments.

This can be the acquisition of new companies or assets, or the sale of subsidiaries. The goal here is to understand how much the company needs to invest in itself for both expansion and maintenance. Almost all tangible assets need replacing at one point, and it’s no good if the company is constantly needing to spend cash flow on maintaining those assets. However, if the company is able to spend on expansion and growth, then this is clearly different. 

Ideally, we want to work out whether the company is investing for maintenance or growth. 

If we want to go deeper, then we can check the depreciation and amortisation policies too. Plenty of profits have been overstated in the past by management teams using discretion here. 

The financing cash flow statement is important because it shows where the capital comes from into the business.

Ideally, we don’t want to see large capital inflows from equity placings (the issuance of shares). This would mean that the number of shares in issue has increased and that shareholders have been diluted. 

If this is a consistent theme over the last several years, then it’s a business that may be best avoided. If a company can’t self-sustain itself and has to continuously dilute to keep the lights on it probably isn’t a quality business.

However, companies that have financed themselves through equity placings for years can sometimes reach the inflection point where the company is able to self-sustain itself and grow through its own cash flow.

11. Identify the headwinds and tailwinds

All companies are at the mercy of the macroeconomic environment. Smaller companies are able to navigate these storms faster than larger companies but still it’s important to focus on the macroeconomic environment.

Key things to explore here include:

The sector environment

The regulatory environment, the economic environment, the political environment.

First of all, we need to work out what can be beneficial for the global economy and the specific sector the company trades in. 

For example, a company that provides oil rigs for drilling companies will have a tough time if the price of oil drops and makes oil exploration economically unattractive. 

A gold producer’s stock price will be correlated to the commodity it produces. 

When Covid-19 hit the world, it quickly became clear that online gambling companies would benefit from people staying at home betting more. Delivery companies also fared well as ecommerce businesses accelerated, whilst high street businesses collapsed.

Primark’s revenue fell from £650m to zero in one month. It didn’t have an online store. 

Understanding these headwinds and tailwinds is a good starting point to assessing the risk of the business. 

The regulatory environment is always worth checking because it can cause problems for businesses in certain sectors. For example, change in financial regulations can affect banks and related businesses. 

The arrival of the General Data Protection Regulation (GDPR) meant that many marketing businesses were restricted from selling to as many people as cold email marketing was outlawed. This hurt profits and so this regulation directly impacted these businesses. As an observation, the United Kingdom is now out of the EU, so perhaps we may see GDPR reversed at some point.

The economic environment is important for consumer facing businesses. In an economic depression, people will still go to the supermarket and they still buy things like food and toiletries. 

But discretionary spending will go down and naturally aspirational purchases will go down should more and more feel the purse strings tighten. 

If the company operates in another country, what is the economic environment there? One company called Mobile Streams operated in Argentina and when the Argentine Peso collapsed, this hurt its profits because the company reported in Sterling. 

Other things to consider are interest rates. When interest rates are low, the cost of capital goes down. Businesses are more likely to borrow money and invest. This can see equities in a tailwind due to investment capital going to higher yielding places such as the stock market.

If interest rates increase, then bonds and other asset classes become more attractive, meaning capital can move out of the equity market elsewhere.

Investing in companies that are listed in the UK but operate internationally can be problematic with the currency (as we have seen above).

However, there are other risks. Mining companies can suddenly have licenses revoked and company assets seized by the government. There is little shareholders in London can do about it. 

The Chinese government listed plenty of frauds in the US (see The China Hustle on Netflix).

Stocks of companies that are listed outside of the UK typically trade at a discounted valuation compared to company peers that operate in the UK. 

Sometimes this discount is justified, and sometimes it is an opportunity.

12. Understand how the company makes money

By this point, you should have a good understanding of the business. You should be able to describe exactly how the company makes its money. 

This sounds obvious, but many new investors buy shares in companies that they don’t understand because the company sounds exciting. 

Peter Lynch, the legendary manager of the Magellan fund at Fidelity, wrote that if you can’t draw a picture of how the business makes its money for a schoolkid, then you shouldn’t invest.

I like small-cap stocks because the compares are easier to understand. I’m not smart enough to understand what contingent convertible bonds are, and neither do I have an edge against swarms of analysts who will be discussing the most effective discount rate on cash flow models of all the company’s subsidiaries. 

I like technology stocks but unless I can understand how exactly the company makes money, I will avoid it. I don’t need to know exactly how the technology works, but I do need to know what it does and why customers want it. If you can’t answer that question, then what business do you have investing your own hard-earned capital?

13. Identify the drivers of the business

As well as understanding how the company makes its money, it’s important to understand the drivers of the business.

For example, where can the business grow? How? What does the company need to do to achieve this? 

Many companies listed on the AIM market of the London Stock Exchange are sub-scale businesses. They are listed but never achieve the inflection point that will see their businesses grow and scale up. 

You should have a clear understanding of what exactly the company intends to do to create shareholder value and why this will benefit the company and its shareholders.

It’s no good a company increasing their revenues if it is also going to increase their costs to a point where the company needs to continuously replace machinery and never reach the scale to make a profit.

14. Research the company’s competition

The Five Forces framework was created by Harvard Business School professor Michael Porter in order to analyse a company’s attractives and chance of success. 

It is taught widely in business schools across the world, and consists of the following five variables, or ‘forces’.

Threat of existing competition

Threat of supplier power, threat of buyer power, threat of substitution, threat of new entry.

Existing competition is always a threat, both from larger businesses and smaller businesses. Larger businesses have better distribution and benefit from economies of scale.

New and small businesses can also adapt quickly and be more nimble than larger companies. 

A classic tactic of larger businesses is ‘destroyer pricing’ – big companies know they can win in a race to the bottom in an attempt to squeeze profits on smaller competition. Large companies also have bigger marketing budgets.

However, bigger marketing budgets don’t always win. For years, Procter & Gamble (P&G) dominated supermarket finite shelf space with large marketing campaigns. But along came the internet, and suddenly there was infinite shelf space. 

Dollar Shave Club was able to negate P&Gs huge marketing budget advantage by creating a viral marketing campaign with a YouTube video. 

But why did Unilever buy Dollar Shave Club and not P&G? Shareholders were reluctant to move away from the cash cow of Gillette that had served them so well in the past: add on a vibrating head, market it, give shavers more blades, market it.. 

Dollar Shave Club made huge inroads into Gillette’s market share because razors were already good enough and the model could be disrupted. 

Always check out the competition, both large and small companies.

Having a handful of suppliers can be great because a business can benefit from economies of scale. But if suppliers know that a business is increasingly reliant on them, then this puts them in a better position to increase their prices. 

The goal of a company should be to have enough purchasing power over its suppliers, but not so much that suppliers can dictate their terms and prices to the business. 

If a company says it is reliant on one supplier that is clearly a big risk. Ask the company how easily and quickly it could switch to another supplier because one day it might have to do exactly that.

Buyer power is another risk. If a large percentage of a company’s revenue is from one customer, then the customer (buyer) is in a strengthened position to negotiate discounts and drive a company’s prices down. This can be mitigated by making it harder for them to switch suppliers by providing a unique product or service.

This risk can also be mitigated by a company broadening its revenue base and diluting the percentage of sales from a single customer. 

The threat of substitution refers to customers finding a way of solving their problem without having a need for the company. For example, accounting software which makes accounting easier could be replaced by a real accountant who is willing to undercut this price. 

This is why all businesses need what Warren Buffett calls an ‘economic moat’. In the example of Coca-Cola, who can substitute Coke? There is Pepsi, and knock-off similar drinks, but only Coca-Cola is Coca-Cola. 

Ryanair’s moat is its economy of scale, which means its price per seat is lower than many of its competitors’ cost per seat. 

However, threats can come from everywhere. The regional airline Flybe’s biggest competitor wasn’t other airlines, but trains. Trains were sometimes faster and quicker, and if you missed one train you could always catch the next. 

As well as the threat of existing competition, there is the threat of new entry. 

Some sectors are harder to enter than others. For example, the consumer soft-drinks category is very easy to enter, whereas the pharmaceutical industry is tough. In order to get an approved drug for sale, potential drug candidates must go through rigorous testing and safety profiles which requires years and lots of money.

However, just because an industry is tough to enter doesn’t mean it can’t be done.

Herb Kelleher’s Southwest Airlines fought lawsuits from competition for years, but eventually his business got off the ground and is today held up as an exemplar of success in the low-cost leadership differentiation strategy. 

15. Check the broker forecasts

I place little value on broker notes. Not because I doubt the intelligence of the analysts – I’m sure they are much smarter at analysing a business that I am. 

But these analysts are not able to say what they think like I can. Analysts that are employed by a broker that performs corporate finance services such as stockbroking or equity sales are hardly going to write a sell note. Never bite the hand that feeds!

Secondly, analysts tend to stick together in groups. This is because it is the least risky option. If the analyst is wrong, but all analysts are wrong, then it’s much harder to look silly. But if one analyst makes a wild claim and is wrong, then they can look very stupid indeed.

As the old stock market saying regarding fund managers all owning the same stocks goes:

“Nobody ever got fired for owning IBM”

However, broker forecasts can be useful, as we can look at the consensus expectations and then work backwards to see if the forecasts are achievable.

For example, a company has forecasted consensus revenue of £30 million for 2021 and it achieved £26 million in 2020 with a 15% increase from the previous year. But the management is saying due to tailwinds in the industry costs are expected to be lower and revenue is expected to grow faster than the previous year. 

A 15% increase on £26 million is £29.9 million which meets forecasts, yet the company is telling the market that it expects revenues to grow at a faster rate. Therefore, it is not unreasonable to believe that the company has a good chance of beating market expectations. This is why reading management commentary as well as the financial statements is useful because sometimes useful information can be found in the chair and chief executive statements. 

Rarely will I seek out to read detailed broker notes (and definitely not before I have done all my own research). Remember, nobody cares more about your own money than your own. Why would you trust somebody else to look after it more than yourself?

However, reading a detailed broker note can offer a different perspective than your own. I don’t believe it can do much harm, but do not become reliant on others’ research. Do your own cooking. 

It’s worth noting that if no detailed research exists, then the stock could be inefficiently priced. This could be an opportunity to get in at an advantageous price.

Turning stock research into a process

This list is to be used as a starting point for doing your own research and creating your own process. There are many stock valuation methods available (read my step-by-step guide on how to value a stock ), and others will be of more importance than others in varying situations. 

Starting research on a stock can be daunting, as there is a lot of noise and information to cover. But by using a clearly defined checklist, this means you can go through the process quickly and filter out red flags effectively. 

Remember, spending hours on a stock only to realise that you won’t be buying it isn’t time wasted. Imagine if you hadn’t done the research and it ended up costing you in the future?

Many new investors spend more time trying to save £50 on a TV from Amazon than they do when it comes to putting thousands of pounds into a stock. It is no wonder then that most private investors lose money when it comes to investing in individual companies. 

The above 15 point list should give you enough information to:

• Understand the company, its USP, and how it makes its money
• Evaluate the financial statements and understand how cash moves through the business
• Know basic valuations about the company’s earnings and book value
• Understand will drive the business forward, and most importantly
• Be aware of the key risks of the business

This final point is crucial. If you understand both the drivers of the business and the risks of the business, then you can evaluate the potential rewards and risks. 

If the downside risk is high, then it may be wiser to find a different investment unless you are comfortable with the risk.

This checklist will help you research stocks for yourself. Pilots aren’t paid for getting to their destinations faster, but paid for doing it safely. 

“No wise pilot, no matter how great his talent and experience, fails to use a checklist .” – Charlie Munger

To learn more about researching and investing in stocks, my book How To Make Six Figures In Stocks includes more information.

About The Author

Michael taylor.

Too soon to get the course ? Get my free UK stock trading ebooks

Start typing and press enter to search

Almost there.

Enter your email below to receive my four free stock trading ebooks with everything you need to start trading the UK stocks.

Enter your email to receive my free “How to Make 6 Figures in Stocks” ebook with everything you need to start investing UK stocks.

Get your free stock trading ebooks

Get four free UK stock market ebooks and my monthly trading newsletter with trade ideas and things learned from trading stocks

Don't miss out!

• Today's news
• Reviews and deals
• Climate change
• 2024 election
• Fall allergies
• Health news
• Mental health
• Sexual health
• Family health
• So mini ways
• Unapologetically
• Buying guides

Entertainment

• How to Watch
• My Portfolio
• Latest News
• Stock Market
• Biden Economy
• Stocks: Most Actives
• Stocks: Gainers
• Stocks: Losers
• Trending Tickers
• World Indices
• US Treasury Bonds Rates
• Top Mutual Funds
• Options: Highest Open Interest
• Options: Highest Implied Volatility
• Basic Materials
• Communication Services
• Consumer Cyclical
• Consumer Defensive
• Financial Services
• Industrials
• Real Estate
• Stock Comparison
• Advanced Chart
• Currency Converter
• Credit Cards
• Balance Transfer Cards
• Cash-back Cards
• Rewards Cards
• Travel Cards
• Credit Card Offers
• Best Free Checking
• Student Loans
• Personal Loans
• Car insurance
• Mortgage Refinancing
• Mortgage Calculator
• Morning Brief
• Market Domination
• Market Domination Overtime
• Asking for a Trend
• Opening Bid
• Stocks in Translation
• Lead This Way
• Good Buy or Goodbye?
• Financial Freestyle
• Capitol Gains
• Living Not So Fabulously
• Fantasy football
• Pro Pick 'Em
• College Pick 'Em
• Fantasy baseball
• Fantasy hockey
• Fantasy basketball
• Download the app
• Daily fantasy
• Scores and schedules
• GameChannel
• World Baseball Classic
• Premier League
• CONCACAF League
• Champions League
• Motorsports
• Horse racing
• Newsletters

New on Yahoo

• Privacy Dashboard

Yahoo Finance

Super micro stock plunges 19% after company delays annual report following short-seller report.

Super Micro Computer ( SMCI ) stock plunged 19% on Wednesday after the company said it would delay the filing of its annual report for its fiscal year that ended June 30.

The announcement comes a day after short seller Hindenburg Research claimed, among other things , "accounting manipulation" at the artificial intelligence high flyer.

"SMCI is unable to file its Annual Report within the prescribed time period without unreasonable effort or expense," the company said in a statement . "Additional time is needed for SMCI’s management to complete its assessment of the design and operating effectiveness of its internal controls over financial reporting as of June 30, 2024."

Super Micro shares soared from $290 in early January to about $1,200 by March, when the stock was added to the S&P 500 ( ^GSPC ). The ticker also joined the Nasdaq 100 index (^ NDX ) in July.

Super Micro stock is now off more than 60% from its March peak but is still up 50% year to date. The company recently announced a 10-for-1 stock split effective Oct. 1.

The stock fell about 2% on Tuesday after Hindenburg said its three-month investigation "found glaring accounting red flags, evidence of undisclosed related party transactions, sanctions and export control failures, and customer issues." The firm also disclosed it had taken a short position in Super Micro.

The maker of data center servers and management software captured the attention of investors this year as it rode the AI wave . The company buys components from AI chipmaker Nvidia ( NVDA ).

Short sellers have been rewarded heavily from the stock's plunge.

Wednesday's drop in Super Micro’s stock price made short sellers more than $840 million in mark-to-market profits, according to S3 Partners data.

"SMCI shorts have been building their positions since SMCI was in the $900’s in April but have really put the pedal to the metal since mid-July," S3 Partners head of predictive analytics Ihor Dusaniwsky told Yahoo Finance on Wednesday.

"We expect continued short selling in SMCI as it’s stock price keep dipping – but beware of a slew of buy-to-covers when its stock price stabilizes and short sellers look to realize their recent outsized gains," added Dusaniwsky.

On Wednesday CFRA analysts downgraded the stock's rating to a Hold from Buy following Hindenburg Research's allegations.

"While we believe the evidence presented does not conclusively demonstrate significant accounting malpractice or verifiable sanction evasions, SMCI's delayed 10-K filing and potential reputational damage raises concerns," wrote CFRA Research senior equity analyst Shreya Gheewala.

In its report, Hindenburg claimed that despite a $17.5 million settlement in August 2020 with the SEC following an inquiry for "widespread accounting violations," Super Micro's business practices did not improve, and senior executives who had left amid the scandal were later rehired.

The report quoted a former salesperson: "Almost all of them are back. Almost all of the people that were let go that were the cause of this malfeasance."

"Even after the SEC settlement, pressure to meet quotas pushed salespeople to stuff the channel with distributors using 'partial shipments' or by shipping defective products around quarter-end, per our interviews with former employees and customers," Hindenburg said in its report.

"All told, we believe Super Micro is a serial recidivist."

Ines Ferre is a senior business reporter for Yahoo Finance. Follow her on X at @ines_ferre .

Click here for in-depth analysis of the latest stock market news and events moving stock prices

Read the latest financial and business news from Yahoo Finance

• Up next View Comments Advertisement

Best Private Jet Charter Companies (August 2024) Research Report Published by InsightReports.org

InsightReports.org is pleased to announce the publication of its latest research report into the best private jet charter and rental companies for August 2024.

Las Vegas, NV, Nevada, United States - August 30, 2024 —

InsightReports.org is pleased to announce the publication of its latest research report into the best private jet charter and rental companies for August 2024. This comprehensive report evaluates and ranks the top five private jet charter companies for 2024, providing valuable insights for discerning travelers seeking luxury, convenience, and flexibility in air travel.

As the demand for private jet charters continues to rise, InsightReports.org has conducted an in-depth analysis of the leading companies in the industry. The report highlights the unique offerings and strengths of each company, focusing on key criteria such as safety and reliability, fleet diversity, customer service, pricing models, and innovative features.

The top five private jet charter companies featured in the report are:

• NetJets: Renowned for its extensive fleet and customized private aviation solutions, NetJets offers unparalleled safety and personalized service.
• VistaJet: Known for its commitment to sustainability and international travel services, VistaJet provides a seamless and eco-conscious travel experience.
• Wheels Up: Offers excellent options for empty-leg flights and short notice bookings, making it a flexible and cost-effective choice for private jet travelers.
• Flexjet: Provides fractional ownership and membership-based programs, catering to frequent flyers with a focus on luxury and personalized service.
• Magellan Jets: Known for its flexibility and strong safety record, Magellan Jets offers innovative jet card programs and on-demand charter flights.

The report provides a detailed comparative analysis of these companies, helping potential clients make informed decisions based on their specific travel needs and preferences.

Criteria for Selection

The selection of the top private jet charter companies was based on a rigorous evaluation of several critical factors. Safety and reliability were paramount, with each company demonstrating a strong commitment to maintaining high safety standards and certifications from recognized aviation authorities. This ensures that clients can enjoy a secure and dependable travel experience.

Fleet diversity and availability were also key considerations, as a varied fleet allows companies to cater to a wide range of client needs, from short-haul trips to long-distance journeys. Companies with a diverse selection of aircraft and flexible booking options were prioritized for their ability to meet the demands of different travelers.

Customer service and satisfaction played a significant role in the evaluation process. InsightReports.org analyzed client feedback and service quality to assess the overall customer experience provided by each company. Companies that excelled in delivering personalized service and maintaining high levels of client satisfaction were given special recognition.

Pricing models and flexibility were important factors as well. The report examined the different pricing structures offered by each company, including membership programs, fractional ownership, and on-demand charters. Companies with transparent and flexible pricing options were highlighted for their ability to provide cost-effective solutions tailored to individual client needs.

Finally, innovative features and unique offerings were considered, as these set companies apart from their competitors. Whether through sustainability initiatives, exclusive partnerships, or unique membership benefits, companies that demonstrated a commitment to innovation were recognized for their forward-thinking approach to private jet travel.

"With the growing popularity of private jet charters, our report aims to guide travelers in selecting the best service provider for their unique requirements," said Andrew Mathews, Editor-in-Chief at InsightReports.org. "We are committed to delivering accurate and insightful research to help our readers navigate the evolving landscape of luxury air travel."

The Best Private Jet Charter Companies (August 2024) report is now available for download on the InsightReports.org website. For more information, please visit https://insightreports.org/ .

About the company: InsightReports.org is a leading provider of in-depth market research and analysis, specializing in delivering high-quality reports across various industries. Our team of experts is dedicated to providing valuable insights and data-driven solutions to help businesses and consumers make informed decisions. The information provided by InsightReports.org is intended for general informational purposes only and does not constitute professional advice. Readers are encouraged to conduct their own research and consult with qualified professionals to make informed decisions based on their specific needs and circumstances.

Contact Info: Name: Andrew Mathews Email: Send Email Organization: InsightReport.org Website: https://insightreports.org/

Release ID: 89139832

Should you identify any discrepancies, concerns, or inaccuracies in the content provided in this press release or require assistance with a press release takedown, we strongly urge you to notify us promptly by contacting [email protected] (it is important to note that this email is the authorized channel for such matters, sending multiple emails to multiple addresses does not necessarily help expedite your request). Our responsive team is committed to addressing your concerns within 8 hours by taking necessary actions to resolve identified issues diligently or guiding you through the necessary steps for removal. Our dedication lies in providing accurate and reliable information.

We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here . By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service .

New to Zacks? Get started here.

Member Sign In

Don't Know Your Password?

• Zacks #1 Rank
• Zacks Industry Rank
• Zacks Sector Rank
• Equity Research
• Mutual Funds
• Mutual Fund Screener
• ETF Screener
• Earnings Calendar
• Earnings Releases
• Earnings ESP
• Earnings ESP Filter
• Stock Screener
• Premium Screens
• Basic Screens
• Thematic Screens
• Research Wizard
• Personal Finance
• Money Management
• Retirement Planning
• Tax Information
• My Portfolio
• Create Portfolio
• Style Scores
• Testimonials
• Zacks.com Tutorial

Services Overview

• Zacks Ultimate
• Zacks Investor Collection
• Zacks Premium

Investor Services

• ETF Investor
• Home Run Investor
• Income Investor
• Stocks Under $10
• Value Investor
• Top 10 Stocks

Other Services

• Method for Trading
• Zacks Confidential

Trading Services

• Black Box Trader
• Counterstrike
• Headline Trader
• Insider Trader
• Large-Cap Trader
• Options Trader
• Short Sell List
• Surprise Trader
• Alternative Energy

You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.

If you wish to go to ZacksTrade, click OK . If you do not, click Cancel.

Image: Bigstock

AngioDynamics (ANGO) Upgraded to Strong Buy: Here's Why

AngioDynamics ( ANGO Quick Quote ANGO - Free Report ) appears an attractive pick, as it has been recently upgraded to a Zacks Rank #1 (Strong Buy). This upgrade is essentially a reflection of an upward trend in earnings estimates -- one of the most powerful forces impacting stock prices.

A company's changing earnings picture is at the core of the Zacks rating. The system tracks the Zacks Consensus Estimate -- the consensus measure of EPS estimates from the sell-side analysts covering the stock -- for the current and following years.

Since a changing earnings picture is a powerful factor influencing near-term stock price movements, the Zacks rating system is very useful for individual investors. They may find it difficult to make decisions based on rating upgrades by Wall Street analysts, as these are mostly driven by subjective factors that are hard to see and measure in real time.

Therefore, the Zacks rating upgrade for AngioDynamics basically reflects positivity about its earnings outlook that could translate into buying pressure and an increase in its stock price.

Most Powerful Force Impacting Stock Prices

The change in a company's future earnings potential, as reflected in earnings estimate revisions, has proven to be strongly correlated with the near-term price movement of its stock. That's partly because of the influence of institutional investors that use earnings and earnings estimates for calculating the fair value of a company's shares. An increase or decrease in earnings estimates in their valuation models simply results in higher or lower fair value for a stock, and institutional investors typically buy or sell it. Their bulk investment action then leads to price movement for the stock.

Fundamentally speaking, rising earnings estimates and the consequent rating upgrade for AngioDynamics imply an improvement in the company's underlying business. Investors should show their appreciation for this improving business trend by pushing the stock higher.

Harnessing the Power of Earnings Estimate Revisions

Empirical research shows a strong correlation between trends in earnings estimate revisions and near-term stock movements, so it could be truly rewarding if such revisions are tracked for making an investment decision. Here is where the tried-and-tested Zacks Rank stock-rating system plays an important role, as it effectively harnesses the power of earnings estimate revisions.

The Zacks Rank stock-rating system, which uses four factors related to earnings estimates to classify stocks into five groups, ranging from Zacks Rank #1 (Strong Buy) to Zacks Rank #5 (Strong Sell), has an impressive externally-audited track record, with Zacks Rank #1 stocks generating an average annual return of +25% since 1988. You can see the complete list of today's Zacks #1 Rank (Strong Buy) stocks here >>>> .

Earnings Estimate Revisions for AngioDynamics

This medical device maker is expected to earn -$0.41 per share for the fiscal year ending May 2025, which represents a year-over-year change of -7.9%.

Analysts have been steadily raising their estimates for AngioDynamics. Over the past three months, the Zacks Consensus Estimate for the company has increased 29.3%.

Bottom Line

Unlike the overly optimistic Wall Street analysts whose rating systems tend to be weighted toward favorable recommendations, the Zacks rating system maintains an equal proportion of 'buy' and 'sell' ratings for its entire universe of more than 4000 stocks at any point in time. Irrespective of market conditions, only the top 5% of the Zacks-covered stocks get a 'Strong Buy' rating and the next 15% get a 'Buy' rating. So, the placement of a stock in the top 20% of the Zacks-covered stocks indicates its superior earnings estimate revision feature, making it a solid candidate for producing market-beating returns in the near term.

You can learn more about the Zacks Rank here >>>

The upgrade of AngioDynamics to a Zacks Rank #1 positions it in the top 5% of the Zacks-covered stocks in terms of estimate revisions, implying that the stock might move higher in the near term.

See More Zacks Research for These Tickers

Normally $25 each - click below to receive one report free:.

AngioDynamics, Inc. (ANGO) - free report >>

Published in

This file is used for Yahoo remarketing pixel add

Due to inactivity, you will be signed out in approximately:

• Faculty and Staff News
• Media Resources
• Purdue News Weekly
• Research Excellence
• Purdue Computes
• Daniels School of Business
• Purdue University in Indianapolis
• The Persistent Pursuit
• Purdue News on Youtube
• Purdue in the News
• Purdue University Events

Smart concrete from Purdue named a Next Big Thing in Tech by Fast Company magazine

Purdue the only university on list of innovations already hard at work in the real world

Luna Lu, the ACPA Professor of Civil Engineering in Purdue’s Lyles School of Civil Engineering, demonstrates the smart concrete sensors that are embedded into the pour during construction. The “smart” factor includes telling engineers when the concrete is at its strongest and when it needs repair. (Purdue University/Rebecca McElhoe)

WEST LAFAYETTE, Ind. —

Interstates across the country boast an innovative concrete technology that promises to save American travelers time and money. This “smart concrete” can communicate with engineers about its strength, weakness and need for repair – making road repair more efficient and preventing unnecessary shutdowns. Developed at Purdue University, the innovation is earning attention and has now been named one of the Next Big Things in Tech by Fast Company magazine.

Chosen from a pool of nearly 1,400 applicants,  124 final projects  across 21 categories were selected for already making an impact on a real-world problem while also showing promise to make a greater impact in the years to come. Among large corporations and small startups, Purdue is the only university represented on the list.

Purdue shares the  Transportation  stage with organizations like ClearFlame Engine Technologies, which enables active heavy trucks to shift away from diesel fuel, and Walmart-backed DroneUp, a leader in aerial drone delivery.

Developed by  Luna Lu , the American Concrete Pavement Association Professor of Civil Engineering in Purdue’s  Lyles School of Civil Engineering , smart concrete works via sensors embedded into the pour during construction. The “smart” factor involves telling engineers, via smartphone app, when the concrete has reached maximum strength after construction or when it is beginning to break down.

“Traffic jams caused by infrastructure repairs have wasted 4 billion hours and 3 billion gallons of gas on a yearly basis,”  Lu says . “This is primarily due to insufficient knowledge and understanding of our infrastructure’s condition.”

Fast Company states that the self-aware concrete may “provide highway users with  a gift that will keep on giving .” Intelligent infrastructure, like roadways that feed us data, is a fairly new field, and Lu and her team already have a running (or rolling) start.

According to Lu, who is also director of the  Center for Intelligent Infrastructure ,  digitally improved roadways  may cut down on construction, be better for the environment and be more adaptive to future needs as vehicles continue to evolve. 

Prototypes of the sensors have been in place throughout Indiana highways  since 2019 , thanks to Purdue partnerships with the Indiana Department of Transportation. A Federal Highway Administration nationwide pooled fund has allowed seven other states to join the project.

To improve the tech’s transfer to market, Lu founded  WaveLogix , a startup focusing on Internet of Things sensing systems for infrastructure monitoring. Lu has disclosed the work to the  Purdue Research Foundation Office of Technology Commercialization , where she also licensed it to create WaveLogix. Under Lu, the startup recently received National Science Foundation support and recognition from the American Society of Civil Engineers.

The recognition complements Purdue’s recent honor as, for the second year in a row, the only university on Fast Company’s 2022 list of  Brands That Matter . Through accessible education and innovative, transferable technology, Purdue continues to ask,  What can you imagine?

For more about Luna Lu and the future of smart concrete sensor technology from Purdue:

• Science to reveal how long highway construction should actually take
• Enabling highways and bridges to prevent their own damage
• Purdue Expert: Smart Roads  (video)
• Expert: Roads need to be ‘smart.’ Here’s why.
• Tech startup WaveLogix receives federal SBIR grant to develop its IoT sensors for concrete strength monitoring

About Purdue University

Purdue University is a top public research institution developing practical solutions to today’s toughest challenges. Ranked in each of the last five years as one of the 10 Most Innovative universities in the United States by U.S. News & World Report, Purdue delivers world-changing research and out-of-this-world discovery. Committed to hands-on and online, real-world learning, Purdue offers a transformative education to all. Committed to affordability and accessibility, Purdue has frozen tuition and most fees at 2012-13 levels, enabling more students than ever to graduate debt-free. See how Purdue never stops in the persistent pursuit of the next giant leap at  https://purdue.edu .

About Purdue Research Foundation Office of Technology Commercialization

The  Purdue Research Foundation Office of Technology Commercialization  operates one of the most comprehensive technology-transfer programs among leading research universities in the U.S. Services provided by this office support the economic development initiatives of Purdue University and benefit the university’s academic activities through commercializing, licensing and protecting Purdue intellectual property. In fiscal year 2021, the office reported 159 deals finalized with 236 technologies signed, 394 disclosures received and 187 issued U.S. patents. The office is managed by the Purdue Research Foundation, which received the 2019 Innovation and Economic Prosperity Universities Award for Place from the Association of Public and Land-grant Universities. In 2020 IPWatchdog Institute ranked Purdue third nationally in startup creation and in the top 20 for patents. The Purdue Research Foundation is a private, nonprofit foundation created to advance the mission of Purdue University. Contact  [email protected]  for more information.

About Fast Company

Fast Company is the only media brand fully dedicated to the vital intersection of business, innovation, and design, engaging the most influential leaders, companies, and thinkers on the future of business. The editor-in-chief is Stephanie Mehta. Headquartered in New York City, Fast Company is published by Mansueto Ventures LLC, along with our sister publication, Inc., and can be found online at fastcompany.com.

Writer/Media contact:  (media contact) Kayla Wiles,  [email protected] ; (writer) Christy McCarter,  [email protected] , @ChristyMcCarter Source:   [email protected]  

Note to journalists:

A photo of Luna Lu is available on  Google Drive .

Research News

Purdue research: More than green energy, wind turbines are cost-saving CO2 eliminators

August 26, 2024

From lab to lunar and beyond: Check out some of the innovative space research from Purdue University

August 22, 2024

Inspired by the human body, engineer designs chips that could make wearable AI more energy efficient

August 20, 2024

Validated simulations optimize solar power generation with row crops

August 19, 2024