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Collecting Basic Data on a Stock

Step 4: How Do I Judge a Stock Against Its Industry and the Market?

Industry information for comparison purposes is available from a wide variety of sources, many of which are listed in Table 3. Some of these sources are expensive, so you may want to check with your local library.

Information on the overall "market" is available in many newspapers, but the most standard definition of the market is the Standard & Poor's 500 index. A few sources of information on the S&P 500 index are presented in Table 4.

Table 3. Sources for Industry Statistics

Almanac of Business and Industrial Financial Ratios
CCH
4025 W. Peterson Ave.
Chicago, Ill. 60646-6085
(800) 248-3248
Provides financial ratios and operating factors for 199 industries. Published annually.

Barron's
Dow Jones and Co.
200 Burnett Rd.
Chicopee, Mass. 01020
(800) 568-7625
A listing of the Dow Jones Industry Groups is given in the Market Statistics Section.

Dun & Bradstreet Industry Norms and Key Business Ratios
103 JFK Parkway
Short Hills, N.J. 07078
(800) 234-3867
Calculates industry norms of financial statement items on 800 types of businesses and one million private and public companies.

Investor's Business Daily
P.O. Box 92042
Los Angeles, Calif. 90009
(800) 831-2525
Investor's Business Daily Industry Prices include price changes in 197 industry indexes.

RMA Annual Statement Studies
Risk Management Association
1801 Market St., Suite 300
Philadelphia, Penn. 19103-1628
(800) 677-7621
Composite financial data for the most recent fiscal year on approximately 750 industries.

Standard & Poor's Industry Surveys
Semiannual data is provided on over 50 industries.
Standard & Poor's Analyst's Handbook
Reports the performance of over 115 industries as defined by the S&P subindexes.
55 Water St.,
New York, N.Y. 10041
(877) 772-5436

Value Line Investment Survey
220 E. 42nd St.
New York, N.Y. 10017-5891

(800) 634-3583
The Ratings and Reports volume (Part Three of the survey) presents composite statistics on each industry individually in various issues.

The Wall Street Journal
Dow Jones & Company
200 Burnett Rd.
Chicopee, Mass. 01020
(800) 568-7625
The Dow Jones Industry Groups is presented daily.

Online Sources: Check the Stock Data websites listed in AAII's Guide to the Top Websites.

Table 4. Sources of Information on the S&P 500 Index

Standard & Poor's Outlook
55 Water St.
New York, N.Y. 10041
(877) 772-5436

For a longer-term view of the S&P 500 index: Standard & Poor's Security Price Index Record is published by S&P.

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