How to Research Companies

Let’s finally talk about researching companies. Here’s a step by step guide.

Step 1️⃣: Choose a stock to analyze 📈

As you learned in the last lesson, one way is to pick a company you already interact with, like Apple! 💡

Step 2️⃣: Gather financial data 💰

You can find all of a company’s key financial numbers on their stock page on Bloom! 🌹

Step 3️⃣ : Analyze the financial data 📊

How much money is the company making? Are they profitable? Are they growing? 🤔

Each number on Bloom has a description of what it means, and our later lessons explain these numbers in detail! 🎉

Step 4️⃣ : Evaluate the company’s management and industry position 💼

Look up leadership. Bad leadership can affect long-term growth. 🫂

Who are the company’s competitors? 🥊

Step 5️⃣ : Make an investment decision 💸

If you think the company has good financials, strong leadership, and growth potential in its industry, then it might be a good investment! Otherwise, maybe not. 🤔

Test your knowledge

What is the first step to conducting fundamental analysis?

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What is the easiest way to find financial data for a company?

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What should you research in addition to financial data?

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What's next?

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