Where do financial analysts get their raw data from in order to predict revenue, earning, etc. to make their recommendations?
Financial analysts typically obtain their raw data from a variety of sources, including:
- Corporate financial statements - Analysts review a company’s income statements, balance sheets, and cash flow statements to assess its financial performance.
- Earnings reports - Public companies release quarterly and annual earnings reports that provide detailed financial information.
- Industry and market data - Analysts look at data on industry trends, macroeconomic conditions, and market dynamics that can impact a company’s financial outlook.
- Government and regulatory data - This can include economic indicators, census data, and reports from entities like the SEC that provide insight into the business environment.
- Third-party data providers - Services like Bloomberg aggregate and organize financial data that analysts use for analysis.
- Firsthand research - Analysts may conduct surveys, interviews, and site visits to gather proprietary information about a company and its operations.
The combination of quantitative data from financial statements and reports along with qualitative market intelligence allows analysts to develop comprehensive forecasts and investment recommendations. The specific mix of data sources can vary depending on the company, industry, and the particular analysis being performed.
Aside from personal studies and series of research that analysts rely on, they have unlimited access to companies data, firms and or other organizations they work for. They track back in time to take a keen study of how economic events and financial activities have been in the past, they make comparison from previous inflation/deflation with the current market structure and come out with analysis that predicts future revenue.
Most of the time we also rely on the live market globally for such prediction.