Perform Group Google Finance

Here’s an HTML-formatted explanation of how to perform group analysis using Google Finance:

Google Finance, while not as feature-rich as dedicated financial analysis platforms, can still be used to perform basic group or sector analysis. This is particularly useful for getting a quick overview of how a set of related stocks is performing relative to each other or to market benchmarks.

Creating a Watchlist

The foundation for group analysis is a well-defined watchlist. You need to create a watchlist that contains the stocks you want to analyze as a group, for example, stocks in the renewable energy sector or major tech companies. Here’s how:

Go to Google Finance.
Sign in with your Google account if you want to save your watchlist.
Click on “Create watchlist” (or find the existing “My watchlists” section).
Give your watchlist a descriptive name (e.g., “Renewable Energy Stocks,” “FAANG Stocks”).
Start adding stocks by typing their ticker symbols into the search bar and selecting them. Repeat for all stocks in your group.

Analyzing Group Performance

Once you have your watchlist, you can start analyzing the group:

Visual Comparison: Google Finance displays a basic chart of each stock in your watchlist. You can quickly scan this to see which stocks have performed well and which haven’t. Hovering over a stock’s line on the chart highlights that specific stock, making it easier to visually compare trajectories.
Key Metrics at a Glance: The watchlist provides basic metrics like the day’s change (percentage and dollar amount) and the current price. This allows for an immediate comparison of daily performance across the group.
News and Information: Each stock listed links to relevant news articles. This helps to understand the external factors influencing the group’s performance, such as industry regulations, technological advancements, or economic trends.
Detailed Stock Pages: Clicking on an individual stock opens its detailed page, offering more in-depth financial data, historical performance, and analyst ratings. This helps you assess the health of each company within the group.

Benchmarking

A critical aspect of group analysis is comparing your group’s performance to a benchmark. This can be done indirectly:

Add a relevant index (like the S&P 500 or a sector-specific ETF) to your watchlist.
Compare the performance of individual stocks within the group against this benchmark. Is the renewable energy group outperforming the S&P 500? Are certain stocks significantly lagging behind?

Limitations

Keep in mind Google Finance has limitations for advanced analysis:

Limited Data: Google Finance provides basic financial data but lacks the depth of dedicated financial platforms (e.g., detailed financial statements, sophisticated charting tools).
Lack of Customization: The charting and analysis options are limited. You can’t easily create custom ratios, screen stocks based on specific criteria, or perform regression analysis within the platform itself.
No Group-Level Metrics: Google Finance doesn’t provide aggregate statistics for your watchlist as a whole (e.g., average return of the group).

Despite these limitations, Google Finance is a convenient and readily accessible tool for quick, visual group analysis, especially when supplemented with other research and data sources. It’s best used for initial screening and generating investment ideas, rather than making final investment decisions.