Professional Research

Research and analysis is categorized as either buy-side or sell-side. You, as an investor, will see only sell-side information. Buy-side analysis, in contrast, is created by and for institutional investors, such as mutual funds and pension funds.

Sell-side research is available from either in-house or independent sources. Some brokerage firms maintain research departments and provide in-house analysis both as a service to their clients and a means to stimulate trading activity. Independent analysis is provided by companies like Standard & Poor's, Reuters, Market Edge and Morningstar, whose research teams are dedicated to creating and publishing research analysis. Scottrade offers several of these research reports for free under the Quotes & Research tab in your account.

Porter's Five Forces

On an individual stock level, analysis typically follows some method of company-specific research: peer comparison followed by a review of the company's valuation and/or technical analysis of the recent price history. One of the most common models for doing company-specific research is called the Porter Five Forces Model. It calls for a specific review of industry competitors and the rivalry that exists between them, the ease with which new companies could enter the industry and compete directly against the company, the bargaining power of the company's suppliers, the bargaining power of the company's customers and the possibility of substitute products or services.

The information and content provided in the Scottrade® Knowledge Center is for informational and/or educational purposes only. The information presented or discussed is not, and should not be considered, a recommendation or an offer of, or solicitation of an offer by, Scottrade or its affiliates to buy, sell or hold any security or other financial product or an endorsement or affirmation of any specific investment strategy. You are fully responsible for your investment decisions. Your choice to engage in a particular investment or investment strategy should be based solely on your own research and evaluation of the risks involved, your financial circumstances and your investment objectives. Scottrade, Inc. and its affiliates are not offering or providing, and will not offer or provide, any advice, opinion or recommendation of the suitability, value or profitability of any particular investment or investment strategy.