Stock Fundamental Analysis: Two Methods – Top-Down and Down-Up Approach

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There are two ways to evaluate the fundamental analysis: top-down and bottom-up.

Fundamental Analysis Breakdown:
1. Health of Economy
2. Industry
3. Earnings

Top-Down Analysis:
-Checking the health of the economy, followed by the industry, followed by company earnings. If the company earnings are good, this is when you may decide to buy the stock.

Bottom-Up Analysis:
-Checking the earnings, followed by the industry, followed by the health of the economy.

#stockfundamentals #fundamentalanalysis #stockanalysis #stockmarket

Posted at: https://tradersfly.com/blog/stock-fundamental-analysis-two-methods/

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