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Researching a stock is a lot like shopping for a car. You can base a decision solely on technical specs, but it’s also important to consider how the ride feels on the road, the manufacturer’s reputation and whether the color of the interior will camouflage dog hair.
Investors have a name for that type of stock research: fundamental analysis.
What that means: Looking at a range of factors — such as the company’s financials, leadership team and competition — to evaluate a stock and decide whether it deserves a parking spot in your portfolio.
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