Professional stock research comes in different
formats to meet different investor needs.
The most detailed, and the one that usually goes
by the name research report, is a profile of a single
company's stock: an in-depth report that examines various aspects
of the stock's potential performance — such as an analysis
of the company's balance sheet, its place in its industry,
the market for its products, and its stock price and trading history.
Some research firms offer a snapshot version that
provides a one- or two-page condensed report that may stand alone
or summarize material from a detailed report. And some firms offer
regular newsletters that summarize recent research and make stock
suggestions.
You may use all of these formats: Find stock ideas
in a newsletter, review the snapshot pages, and then pore over
in-depth reports for the most interesting stocks. Or you may find
yourself just using one kind of research. In the end, it depends
on what works best for you.
Sam Stovall,
Chief Investment Strategist at Standard & Poor’s
Unequal treatment
Not all companies are equally scrutinized. Large companies
tend to get the most research attention, though some
analysts focus on
mid-cap
or
small-cap
companies. Dozens of analysts may follow a star company
in a hot industry, while an out-of-favor company may
attract just a handful. And some companies aren't
covered at all.