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05/16/2024 |

Maximize Your Market Insights with Fundamental Data

This is the header image for the Fundamentals blog post.

Here at TrendSpider, we love technical analysis, but let’s be honest; behind every great technical pattern and setup lies a real company with real dollars flowing into and out of it, creating those patterns. As the great Peter Lynch once said;

While technical analysis helps us to understand what’s happening on the chart, fundamentals offer a window into a company’s underlying value. Savvy investors and traders integrate the two to work as a cohesive unit, and now you can, too, with our all-new Fundamental Data tools.

Fundamentals Offer A 360 Degree View Of A Stock’s Performance

With our Fundamental Data tools, you can incorporate quarterly fundamental metrics directly onto your charts, in your scans, alerts, smart checklists, and custom scripts. This means you can visualize and utilize the most important fundamental data points, like earnings per share, revenue, debt ratios, and more, directly alongside your technical analysis, offering you a more holistic and well-rounded view of a stock’s performance.

This is an AAPL chart with fundamental data visualized on it.

Fundamental Data At Your Fingertips

Adding Fundamental Data to your charts takes just a few clicks! First, navigate to the ‘Other data’ menu in your top toolbar.

This is an image of the other data button.

Then, check the box next to ‘Fundamentals’. That’s it!

This is an image of the Fundamentals selection within the 'other dta' dropdown menu.

The Fundamental data of your choice will be displayed as a lower indicator and you can choose from hundreds of metrics to analyze.

Hundreds Of Fundamental Metrics

This new integration covers a wide range of fundamental metrics that can be instantly visualized. To see a specific metric, type its name into the ‘Series’ search box and all relevant options will populate.

This is an image of the Fundamentals lower indicator and the search box within it that allows you to select the fundamental data point you're interested in viewing.

With hundreds of metrics to choose from, our Fundamentals indicator provides you with every data point you need to dive deep into the inner workings of any company’s financials. Listed below are a few of the most sought-after metrics that are now available, but for an extensive list of all available metrics, click here.

  • Earnings Per Share (EPS)
  • Revenue
  • Debt Ratio
  • Cash Flow
  • Profit Margin
  • And many more

The Fundamentals Indicator, Explained

This image explains the components of the fundamentals lower indicator.

The Fundamentals indicator offers three important metrics in an easy-to-read visualization to help you interpret the data effectively:

  • White Line: Represents the metric value
  • Green Dot: Denotes that the quarterly metric improved year over year.
  • Green Cloud: Visualizes the scale of the year over year increase.
  • Red Dot: Denotes that the quarterly metric fell year over year.
  • Red Cloud: Visualizes the scale of the year over year decrease.
  • Gray Dot: Represents the value of the metric in the corresponding quarter in the previous year.

Dots and clouds can also be disabled if you’d prefer.

Harness Fundamentals Like Never Before

Visualizing fundamentals on your chart is only half the battle. The real power of fundamental data lies in the ability to implement it into your processes and with this update, you can in spades.

If you’re an avid TrendSpider trader, you’re probably aware of our Visual Scripting functionality. Fundamentals are now a selection within many of the tools that utilize Visual Scripting, from scanning and multifactor alerts to smart checklists and even custom scripts.

Hunting Down Opportunities

In a stock picker’s market where the hot names change as quickly as the narratives, savvy traders merge the power of technicals with the depth of fundamentals to find names with real staying power. Layer in fundamentals with your favorite technical setups, like this True Market Leaders scanner, and hunt down the strongest names, every day. Better yet, have them delivered straight to your inbox!

This is an image that shows fundamentals within a visual script.

Sounding The Alarm

Sometimes, an unexpected change in fundamental metrics can be the alarm bell to get into or out of a trade. With multifactor alerts, define the fundamentals that matter and let the platform monitor for any important changes. When they happen, you’ll be notified instantly.

This image shows an example of a multi factor alert that contains fundamental data.

Visualize All The Fundamental Data At Once

Smart Checklists are known for their ability to take your visual analysis to the next level. With easy-to-read red and green highlights denoting if a condition is true, traders can quickly discern fundamental data in mere seconds.

This image shows a smart checklist containing fundamental data.

Fundamentals Are For Everyone

If you’re a technical trader and just starting to dip your toes into utilizing fundamentals in your analysis, here are some examples to help get your gears turning!

Revenue & Semis

If you’re interested in seeing how the AI race is shaping up across semiconductor names, simply compare their revenues over the past three quarters and a clear image comes to light. NVDA and SMCI are swallowing up market share at an olympian’s pace with +200% YoY revenue growth while INTC is losing revenue.

This is a chart that compares NVDA, SMCI, and INTC revenues.

Visualize Bubbles Forming & Popping

As the poster child of the COVID era, MRNA made a killing selling vaccines. Profitability soared in the quarters that followed the pandemic, but all good things must eventually come to an end, and in this case that’s visualized by their gross profits, which took a nosedive in mid-2022.

This is an image that visualizes MRNA gross profits.

Electric Vs. Legacy Auto

Why does TSLA trade at such high earnings multiples compared to legacy automakers? It’s simple, they take home more dollars per car sold. This can be visualized by their gross profit margins, which have exceeded GM‘s for over six years.

This is a chart of GM and TSLA gross profit margins.

Long Term Debt

This chart explains why they call it a ‘debt burden’. AT&T stock has returned a brutal -0.40% CAGR over the last 20 years while long-term debt has grown at 11.74% CAGR over the same time. There’s a hole in your pocket!

This is an image of AT&T's long term debt.

Visualize Revenue and EPS with the Reports Widget

The Reports Widget offers another unique and intuitive way to visualize Revenue and EPS values on the platform, with insightful data from quarterly (10-Q) filings.

This is an image of the 'reports widget.

The Reports Widget consists of three distinct charts. These charts are built off of the same data but offer different visualizations that can be utilized to suit your preferences.

  • The Metric Value Chart
  • The Price Reaction Chart
  • The Reports List

The Metric Value Chart

This is an image of the metric values chart discussed in the below bullet points.

The Metric Value Chart provides a visual representation of the chosen metric (Revenue or EPS) over time, allowing you to track the performance of a stock in tandem with revenue or EPS performance. Each set of four columns indicates a specific year, and each column indicates the metric value for a specific quarter. The color of the column indicates the current quarter’s performance compared with the same quarter in the previous year.

  • Red Column: Value is lower YoY
  • Green Column: Value is greater YoY
  • Grey Column: Unavailable data
  • Semi-Transparent Column (Far right): Analysts’ expectations and consensus for next quarter’s metric.

The yellow dash atop each column illustrates analysts’ consensus expectations for the period. This value was known before the report was released.

  • Yellow dash within the column: Company beat expectations (Positive Surprise)
  • Yellow dash above the column: Company missed expectations (Negative Surprise)
  • Yellow dash equal to the top of the column: Company met expectations (No Surprise)
  • White Dotted Line: Represent the stock price

What Does The Chart Tell Us?

  • In the last three quarters of FY 2023 and the first quarter of FY 2024, the earnings per share for this company were worse than the previous four quarters.
  • The highest EPS value over the last 4 years is expected for the next quarter.
  • Aside from Q1 of 2023, when EPS increases, so too does the stock price.

The Price Reaction Chart

This is an image of the price reaction chart discussed below.

The Price Reaction Chart plots the 3-day average move of a stock following a report’s release. It features red and green dots of varying opacity scattered across four unique quadrants. The horizontal axis represents the change in price after three days while the vertical axis represents the % surprise of the report. The more opaque the dot, the more recent the report.

  • Red Dot: The metric value this quarter decreased from the same quarter in the previous year
  • Green Dot: The metric value this quarter increased from the same quarter in the previous year
  • Dot in upper-left quadrant: Positive surprise, price decreased
  • Dots in upper-right quadrant: Positive surprise, price increased
  • Dots in lower-left quadrant: Negative surprise, price decreased
  • Dots in lower-right quadrant: Negative surprise, price increased

What Does This Chart Tell Us?

  • When there is a positive surprise, the stock price has increased all but three times in the three days following the report.
  • This stock has a tendency to come in very close to consensus, with many dots visualized at or near the ‘zero’ level of the ‘surprise %’ axis.
  • The most recent reports have all increased from the same quarter’s report in the previous year.

The Reports List

This is an image of the reports list, which is explained below.

The Reports List presents another way of looking at the same data defined in the previous charts. It features the raw data without any additional graphs. When you hover over a specific quarter, the corresponding quarters from the previous years will be highlighted automatically.

  • Value: Metric value for the defined quarter
  • Chg%: Year-over-year metric change in percentage terms
  • Surp%: Beat/Miss surprise percentage
  • 3d Chg: The change in price three days after the report

A New Way To Visualize Earnings Estimates

In addition to these new tools, we’ve also added a new way to visualize future earnings estimates. When you enable Earnings via the ‘Other Data’ button in your top tool bar, you’ll now see the estimate for the upcoming earnings report within the earnings label at the bottom of the chart.

This is a chart showing the new earnings estimate visualization.

Conclusion

The integration of fundamental data into TrendSpider marks a significant milestone in our commitment to providing you with the most powerful and inclusive set of trading and investing tools possible. We’re excited to see how this enhancement will empower you to make better-informed decisions in the market. Stay tuned for more updates as we continue to innovate and improve our fundamental data offerings!

Note: For a complete list of supported fundamental metrics, please refer to this list.