How to Analyze a Stock Like a Pro: Fundamental vs. Technical Analysis

Picking stocks in 2025 feels like a superpower when you know how to analyze them. Two methods dominate: fundamental analysis (the "why" behind a stock) and technical analysis (the "when"). Pros use both—so can you. Here's how.

Fundamental Analysis: Digging into the Business

What It Is

Evaluating a company's health—earnings, revenue, debt, and more.

Key Metrics

• P/E Ratio: Price-to-earnings. Is it overvalued compared to peers?
• EPS Growth: Earnings per share. Is profit rising?
• Debt-to-Equity: Can it handle its loans?
• Dividends: Cash flow for shareholders.

How to Do It

Read annual reports, check news, and use tools like Yahoo Finance.

Best For: Long-term investors buying undervalued gems (e.g., Warren Buffett style).

Technical Analysis: Riding the Charts

What It Is

Studying price patterns and trends to time trades.

Key Tools

• Moving Averages: 50-day or 200-day lines signal trends.
• RSI: Relative Strength Index. Overbought (>70) or oversold (<30)?
• Support/Resistance: Price floors and ceilings.

How to Do It

Use platforms like TradingView or Thinkorswim to spot patterns.

Best For: Traders who want to buy low, sell high, fast.

2025 Twist

Fundamentals shine in a choppy market—think value stocks if growth slows. Technicals rule when momentum drives tech or crypto. Combine them: Use fundamentals to pick winners, technicals to time your entry.

Pro Tip

Start with a stock you know. Run its numbers (fundamentals), then check its chart (technicals). Practice makes perfect.