A trader or investor uses stock analysis to examine and evaluate the stock market. It is then used to make educated decisions about purchasing and selling stocks. Stock analysis is also known as market analysis or equity analysis.

Stock analysis can be used to gain insight into the economy as a whole, the stock market, a specific industry, or a single stock.

Stock analysis is based on the idea that by studying historical and current market data, traders can develop a methodology for selecting which stocks to focus on, as well as a method for identifying entry and exit points for their trades.