The role of fundamental analysis in stock picking for investment

Prices’ behaviour of the shares on the stock exchange, as a rule, mirrors the state of the economy hence the option for this type of investment does not always generate a positive return. Fundamental analysis for equities assessment plays an important role in making investment decisions and implies...

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Bibliographic Details
Main Authors: Rui Carlos Lobo Miranda, Maria Teresa Venâncio Dores Alves
Format: Article
Language:Portuguese
Published: Universidade Federal de Santa Catarina 2018-12-01
Series:Revista Contemporânea de Contabilidade
Subjects:
Online Access:https://periodicos.ufsc.br/index.php/contabilidade/article/view/54700
Description
Summary:Prices’ behaviour of the shares on the stock exchange, as a rule, mirrors the state of the economy hence the option for this type of investment does not always generate a positive return. Fundamental analysis for equities assessment plays an important role in making investment decisions and implies the analysis of companies' performance. The aim of this study is to verify, among the selected companies, which is the best asset for investment with a potential for appreciation and creation of capital gains for investors. We have conducted a bibliographic; documentary; quantitative and exploitive case study research. We have calculated a set of key indicators for the period 2010-2013, having as data source annual accounts. It was found that among the mentioned companies, the best asset for investment was Mota Engil, as it has showed the best performance regarding the selected indicators.
ISSN:1807-1821
2175-8069