Good Stock Research Relies on Quantitative and Qualitative Analyses

​Financial professional Bradley DiTeresi has more than 10 years’ experience in wealth management. A resident of Olathe, Kansas, Bradley DiTeresi enjoys conducting research on stocks.

Thorough stock research is the backbone of sound investing. It encompasses both quantitative and qualitative factors.

For quantitative stock research, investors rely heavily on the published financial statements that companies release. For example, publicly listed companies file a Form 10-Q with the U.S. Securities and Exchange Commission quarterly and a Form 10-K annually. These forms contain the company’s financial statements, including the income statement and balance sheet. As part of their stock research, investors read these statements to learn about a company’s revenue, expenses, profit/loss, assets, and liabilities. They can also compare a company’s current numbers with those from previous years or with companies in a similar industry to identify whether the company is growing or performing better than its peers.

Qualitative stock research, for its part, is an analysis of the non-technical aspects of a company. These include management expertise, innovative capability, and customer loyalty, among many others. Investors should prioritize investing in companies with good financial fundamentals as well as qualitative competitive advantages.

Bradley DiTeresi, Wealth Management, Right Running Shoes

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