Beyond a report's rating and target price is the
detailed research, much of which focuses on comparing the price
of the stock to some measure of its value. You may also see more
subjective analysis of the company's management team, its business
strategies, and its products in an overall discussion of how well
the company is positioned for the future.
The reports you use might also provide information
about a company's performance relative to its industry peers.
For example, if the company is lagging behind, you might hold
off buying until it resurges. If it's leading the pack, you may
ask whether it can maintain its position, especially if a rising
competitor is nipping at its heels.
Most reports also include information about the
company's assets and
liabilities,
since too much debt, for example, can affect a company's profitability.
Some investors pore over every chart and sentence
of the analysis they read. But you can also delve into a report
and hunt out just those elements that interest you.
Where numbers come from
The reported numbers come from the company's public
statements, including its
audited
annual SEC
filing and unaudited quarterly filing. You can get many of these
numbers yourself, from the filings. But an analyst report may
put the numbers in context, to give you a better sense of why
sales are up or down, for example. And analysts also provide estimates,
which, while never perfect, can give you a sense of the company's
likely direction.
Sam Stovall,
Chief Investment Strategist at Standard & Poor’s
Sam Stovall, 
