Despite the pandemic, the stock market performed outstandingly last year. And stock analysts expected it will continue in 2022 as they predicted an 8% increase in global earnings. While this is good news, finding the best stock to invest in can get a little tricky.
Stock analysis is done by evaluating stocks to identify possible stock prices. It helps in deciding whether to purchase, sell, or hold certain stock. Investors also use it to develop more specific expectations for a company’s performance and stock price movement.
But even with such a comprehensive method, it’s not without risks. Even top stock analysts use tools to reduce these risks and identify the best stock ratings. In this article, you’ll find out how different analyst tools can make stock analysis a lot easier.
Top Rated Stock Analysts: Where to Find Them
Investors and traders use stock market analysis to aid them in buying stocks. They make use of different analysis methods like technical analysis by researching and evaluating previous and current data.
This helps them set a stock’s price target to determine the stock’s worth in the future. Stock analysts do extensive research to uncover any movement in any area of the stock market.
Analysts are employed by many financial firms to investigate some companies or investment funds. Stock analysts provide recommendations to their clients directly or they can make them public.
Individual investors can look for stock analysis from analyst reports on stock trading platforms and websites. These platforms and websites are the best places to look for good stocks to buy. Usually, they have sections for analyst reports like Stock Analysis, Analyst Ratings, or Research.
One such example is the platform Wallstrank. Investors don’t need to do extensive Wall Street research to know which stocks to buy. They can use the platform to screen for stock rankings made by top Wall Street analysts.
Or you can search for specific websites providing stock ratings. For example, you can just type in the keywords, “TheStreet stock ratings”. TheStreet is a credible site that publishes stock reports, so you’ll find the page at the top of the search results.
Do You Really Need an Analyst Tool for Stock Analysis?
Active stock trading is arguably more popular now than it has ever been. And this is all thanks to the development of automated trading. On the Internet, investors can access more information than even brokers did only a few decades ago.
However, the abundance of information and news has made it challenging to consolidate them all. And because of that, it’s hard to digest all the information in a way that makes sense. That’s why stock analysis tools and software are important. They allow traders and investors to examine hundreds of data points to find profitable trades.
Some stock analysis tools let you run a stock screener on a few different criteria. Others provide a more in-depth analysis. You need to be careful in choosing the right tools to make it worth your time and money.
What Makes the Best Stock Analyst Tool?
Usually, a useful stock analyst tool has statistics and analysis from numerous trustworthy sources. Users must be able to easily view essential news as well as long-term patterns in numerous stocks.
Aside from this, here are other features to look for in a stock analyst tool:
- Provides real-time analysis – It may seem obvious, but you need real-time data and analysis to make swift judgments. Delayed information isn’t nearly as useful. And it’s even worse when you read analyst reports from five years ago. Even a year-old report is considered outdated.
- Simple to use – The tool should be user-friendly. After all, even the greatest technological data is meaningless if it’s not easy to understand. This means that the tool should have a good user interface. Complicated tools and software are nearly worthless, as it causes delays that can make individual deals less profitable.
- Adaptable – The analyst tool should also be customizable, allowing you to change any charts to suit your demands. There isn’t one tool that fits every investor’s needs. That’s why personalization is a huge factor that makes the tool useful.
Some of the greatest investing research websites are solely educational. Others allow you to buy stocks directly from their app. These stock analysis tools, combined with the top investment tools, help you find the best stock in the market.
The Best Stock Analyst Tools for Stock Analysis
Investing in individual stocks can beat benchmarking indices such as the S&P 500. Some investors begin by looking at stock analyst rankings and hiring the best stock analysts. On the other hand, some also do the analysis themselves. To help them make better trading decisions, they use the best stock analysis tools.
Stock analysis tools help you keep track of your objectives. This post lists down which tools you need for an effective stock market analysis.
1. Trading Platforms
The first thing you need is to choose a broker with a solid trading platform, and this can be difficult. Some brokers with complex trading platforms charge higher transaction fees. Some also demand a minimum number of trades or account balances to have access to the platform.
However, there are trading platforms like TD Ameritrade that proved to be dependable. They go beyond simply allowing traders to buy and sell stocks. You can also use tools that allow you to take your analysis and trade execution to the next level.
Whichever platforms you use, you should choose the one with features that matches your needs.
2. Mobile Trading Applications
If you’re serious about trading, you’ll want to be able to do it on the move. This means that you need a broker that has a strong app to buy stocks.
Some of these applications let you perform basic stock analysis like conducting simple trades and monitoring quotations. Others appear to be mirror versions of a web or desktop platform. This means they also have advanced features like charting, complicated options trading, and screeners.
3. Charting Tools
Charting is essential for any trader who does technical analysis. Stock charts display a security’s performance over time. This allows traders to see patterns and examine numerous technical indicators.
Charts are used to look back at a stock’s history and identify volatility. You can also use it to compare numerous securities and measure performance against indexes such as the S&P 500.
Some financial websites like Yahoo Finance and Big Charts also provide free charting. Additionally, they allow investors to link their portfolios to brokers and custodians. This gives them access to the site’s additional resources.
4. Stock Screeners
Stock screeners allow you to rapidly choose a stock based on parameters you specify like market capitalization or share price.
The majority of trading platforms contain a screener. However, most traders highly recommend Finviz. It provides in-depth screening features that assist you in narrowing down trade chances. The site also includes charts, market maps, and quotations for the US and worldwide markets.
5. Research Sites
Traders usually do some research to help them make good trading decisions. Many online services for traders and investors give extensive stock analyses like Morningstar and Zacks Investment Research.
- Morningstar – This website has a lot of research tools for stocks, mutual funds, and ETFs. Some of its tools and analysis include analyst reports, extensive charting tools, and a stock grading system. Aside from the website, it also offers solutions for both financial experts and individual investors.
- Zacks Investment Research – This site has several tools for analyzing individual stocks. One example is a powerful screening engine that allows investors to look for stocks that fit a range of criteria. Zacks also offers in-house analyst reports and stock rankings.
To Summarise it All
Stock analysis is an important part of investing in stocks. Every successful investor employs one of the two methods of stock analysis. And some partner with companies that provide stock analysis for their clients.
To make the most out of stock analysis, you need to take advantage of the best analyst tools available. Not only will they help you find the top-earning stocks but they also make the process easier. Some tools are free to use, while you need to buy or subscribe to some. Nevertheless, investing in stock analyst tools is worth it in the long run.