According to fundamental analysis, when choosing stocks for your portfolio, you should prefer undervalued stocks.

Question

Quizplus · Accepted Answer

Fundamental analysis involves assessing a company's financial health and market position to determine its stock's intrinsic value. If a stock is trading below this intrinsic value, it is considered undervalued, suggesting it may be a good investment opportunity as the market price could eventually reflect its true worth.

According to Fundamental Analysis, When Choosing Stocks for Your Portfolio