Fundamental Analyst

Fundamental Analyst

In making investment decisions, a person who analyzes the facts affecting a company's underlying value. Examples of factors considered by fundamental analysts include debt, cash flow, supply and demand for the company's products, and so forth. For instance, if a company does not have a sufficient supply of products, it will fail. Likewise, demand for the product must remain at a certain level in order for it to be successful. Fundamental analysts recommend buying stocks in companies with strong fundamentals because they are essential for long-term success and stability. Fundamental analysis contrasts with technical analysis, which considers primarily short-term indicators. See also: Value investing.