Let’s face it, analyzing stock performance on your own before making a purchase can be time-consuming. And for inexperienced investors, digging through market commentary and reports to make an investment decision can be downright intimidating.
Stockflare, a London-based startup, provides a research tool that organizes stock data in a way that almost anyone can easily digest. The site includes forecasts, stats, and analysis to help you make a well-informed decision about your stock trades. Based on the data collected, Stockflare also gives each stock a star rating from 1 to 5. In this post, we’re going to cover the Stockflare service and how you may be able to benefit from it. Read on to learn:
- How Stockflare works
- How Stockflare analyzes stock
- How much Stockflare costs
- Pros and cons
How Stockflare Works
Stockflare gets most of the data it analyzes from Thomson Reuters. The site provides performance review along with predictions on how a stock may perform in the future. It’s important to note that Stockflare is not a site that offers advice and recommendations. Instead, Stockflare is meant to be a wealth of information you can dive into for research purposes only before making decisions.
You can’t buy stock via Stockflare at this time. However, Stockflare may add investment services in the future, which is something to look out for if you decide to use the platform. U.S. residents can connect existing brokerage accounts to Stockflare to make purchases and to monitor portfolio performance from within the dashboard.
Stockflare currently supports connections with the following brokerage accounts:
- Charles Schwab
- TD Ameritrade
If you live outside of the U.S., you can open an account and connect Stockflare with DriveWealth. Connecting any brokerage account with the platform is free and made possible through a partnership with Trading Ticket.
Stockflare Stock Analysis
You can quickly find stock to analyze on Stockflare by typing in a company name or ticker. If you’re on the hunt for new stock, you can explore companies under curated listings like “Boring Businesses,” “Great Gains,” and “Strong Buys.” You can also search by stock performance.
On each company page, the stocks are put through a series of tests to help you make investment decisions. We took a look at Johnson & Johnson as an example.
For each company’s stock page (in this case Johnson & Johnson), there’s a review of the stock price, percentage change, and actual change. The website does not yet update in real time, so be mindful of this when using it for research.
On the top left of the page underneath the company name are the last time the information was updated and the stock rating.
The five tests that Stockflare puts each stock through to determine the rating include:
The profitability test shows if the company you’re reviewing is, in fact, turning a profit. You can drill down further into the profitability test field to review the short-term earnings-per-share and earnings-per-profit forecast.
Stockflare will tell you whether or not a company pays out dividends and, if so, the dividend forecast and whether competitors also pay out dividends.
Business growth forecast
The site shows the growth trend of the company compared to its top five fastest growing competitors.
Stockflare compares the price-to-earnings ratio versus its top five least expensive competitors.
The final metric is the Wall Street recommendation on whether you should buy the stock.
How Much Stockflare Costs, Registration, and Security
The Stockflare platform is free. You can take advantage of all analysis without paying a dime or even subscribing to the service. There is, however, a registration option for convenience. If you want to create a watch list to track stock on various devices, registering for an account would be necessary to store your information.
If you decide to connect your brokerage account to Stockflare, you’ll probably want it to be password protected. Trading Ticket, the company that enables a connection between Stockflare and your brokerage account, has data encryption and security to give you peace of mind.
Although you can connect the tool with multiple U.S. brokerage accounts, Stockflare touts DriveWealth as its international brokerage partner. DriveWealth’s standard commission is $0.0125 per share with a minimum of $2.99. Fractional shares cost $0.99 per transaction that’s less than a share.
Pros & Cons
Pro: Stockflare is free. The undeniable benefit of this website is its completely free to use. According to the company facts page, the startup is still in its growth phase and not currently earning money from its technology.
Con: It’s not a site for investment advising. If you’re looking for personalized recommendations or a passive approach to investing, you won’t get that from Stockflare. The stock ratings do include Wall Street opinion on whether or not you should buy, but Stockflare is careful to mention this advice is subjective. Ultimately, it’s a resource that’s meant to supplement your decision-making. It’s not a site that will take the place of an actual adviser.
Pro: There’s a Stockflare app. If you want to review stocks on the go, you can download the app for use on multiple devices.
Con: Updates aren’t in real time. Time is an important factor when buying and selling stocks. Stockflare doesn’t currently offer real-time information. In the U.S., the data has a 15-minute delay.
Pro: The way data is presented. Stockflare gets high marks in how clean the interface is for analyzing stocks. The information is put together in an attractive way that’s user-friendly for investors of all experience levels.
Con: You can’t buy stock directly from Stockflare. Although the Stockflare dashboard is impressive visually, it’s a research tool that doesn’t offer investment services. You have to go the extra step of connecting a brokerage account to Stockflare to buy and sell stock.
Other Stock Analysis Tools to Consider
Stockflare is a research tool that combines key research metrics and flashy displays. You can also get similar information from an online broker that has a research center and investment news sources. For example:
Fidelity is a brokerage, so it’s not completely free for stock analysis. But there are valuable free-ish resources you can tap into without becoming a Fidelity client. Parts of the research center, including stock snapshots, stock screening, and stock comparison, are open to the public. You do need to be a Fidelity client to gain access to analyst opinions and to dig into stock ratings from independent researchers. Online trades with Fidelity cost $7.95 per trade, and you need to have an account minimum of $2,500.
TradeKing is an online broker that’s a little more affordable than Fidelity and has a sizable research feature. TradeKing allows you to create a watch list, review company snapshots, do technical analysis, do price forecasting, and more. You can get started with as little as $500, and the cost is $4.95 per trade.
Yahoo Finance has a great amount of information to dig into for stock research. At Yahoo Finance, you can review stats, company financials, history, analyst projections, and more. For a new investor, Stockflare does have a leg up on Yahoo Finance and comparable news outlets when it comes to attractive visuals and beginner-friendliness.
Additional resources and investor communities that may come in handy during your stock research are:
Ultimately, Stockflare can be used in partnership with these or any other resources to guide your trade decisions.
Who Will Benefit the Most from Stockflare
If you want to add another stock analysis tool to your toolbelt, Stockflare is worth a shot simply because there’s nothing to lose. Both new and experienced investors may find Stockflare worthwhile. The dashboard takes the difficulty out of organizing data on your own for analysis. Keep in mind, investing in stocks does present risks. Even if you put in the research, no one can predict with complete certainty what stocks will do in the future.
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