① From the commodity form, it is analyzed whether the company's products are means of production or means of consumption. The former is to meet people's production needs, while the latter is to meet people's living needs, which is very different from the economic environment. Under normal circumstances, the means of production are greatly influenced by changes in the economic environment. When the economy improves, the production of the means of production grows faster than consumption, and vice versa. In consumption data, luxury goods or necessities are more sensitive to the economic environment, and the former is more sensitive.
From the form of demand, it is necessary to analyze the sales target and sales scope of products, and different targets have different requirements for the performance, quality and grade of products; Different sales areas, such as countries and regions, are affected by different economic forms. In particular, it is necessary to find out whether the products are sold domestically or exported. Domestic products are influenced by domestic political and economic factors, while export products are influenced by international political and economic forms, trade climate, foreign political and economic relations and trade policies (such as tariffs and exchange rates). Specifically, the more open a country's economy is, the greater its influence on international politics and economy.
(3) From the production form, it is necessary to analyze whether the industry is labor-intensive, capital-intensive or knowledge-and technology-intensive. Among them, labor-intensive is mainly labor input, capital-intensive is mainly capital input, and knowledge-intensive is mainly knowledge and technology input. In underdeveloped countries or regions, labor-intensive enterprises account for a large proportion, while in developed countries and regions, capital-intensive enterprises dominate. With the development of science and technology, technology-intensive industries have gradually replaced capital-intensive industries. Different types of companies have different labor productivity and competitiveness, which will affect the sales and profitability of enterprises' products and make different profits.
Industry life cycle analysis
Any industry generally has its life cycle. Due to the existence of the industry life cycle, the stock prices of companies in the industry are deeply influenced by the development stage of the industry. 1) growth period
An industry is still in the growth stage, often in the period of technological innovation. Because of its bright prospects, it has attracted many companies and industries to invest in the innovation and transformation trend of new technologies and new products. After a period of competition, some companies' products were accepted by market consumers and gradually occupied and controlled the market, while more companies were eliminated in the competition. Therefore, in the growth period of the industry, the technological progress is very rapid, the profit is very considerable, but the risk is also the greatest, so the stock price often fluctuates greatly. 2) expansion period
At this stage, a few large companies have basically controlled the industry. These large companies have acquired abundant financial resources and achieved high economic benefits through capital accumulation and continuous improvement of technology in the start-up stage. At this stage, although the technical update is still going on, it is relatively mild and not as fast as the initial stage of the venture. The improvement of the company's profit mainly depends on the expansion of the company's business scale, unlike the improvement of technology in the early stage of entrepreneurship, so the profit growth is relatively stable. Therefore, at this stage, the company's share price is basically in a stable rising stage. 3) Stagnation period
In the stagnant stage, due to the saturation of the market and the advent of new products, the growth of the production scale of this industry began to be hindered, even shrinking and declining. However, at this stage, companies in the industry have not given up competition, so profits are on the decline. Therefore, during the stagnation period, the stock market performance of this industry is flat or falling. Some industries are even eliminated because of outdated products, which has a more serious impact on stock prices.
Legal Policy Analysis of Government Related Industries
When the government makes a decision to encourage the development of a certain industry, it will correspondingly increase the amount of preferential loans to the industry, restrict the import of foreign products in the industry and reduce the income tax of the industry. Therefore, these measures have played a very good role in stimulating the stock price of this industry. On the contrary, if the government wants to restrict the development of a certain industry, it will restrict the financing of the industry, raise the tax of the industry and allow similar foreign products to enter. As a result, the share price of this industry will fall.
Analysis of related industry change factors
(1) If the products of related industries are the inputs produced by this industry, the price increase of related industries will lead to the increase of production costs and the decrease of profits, thus the stock price will show a downward trend. The reverse is also true here. For example, if the price of steel goes up, it may cause the company's share price to fall.
(2) If the products of related industries are substitutes for the products of this industry, then if the prices of products of related industries rise, the market demand for products of this industry will increase, thus increasing market sales, company profits and stock prices. or vice versa, Dallas to the auditorium For example, the rising price of tea may have a positive impact on the stock prices of companies dealing in coffee products.
(3) If the products of related industries and the products produced by this industry are complementary, then the prices of related industries will rise, which will have an adverse reaction to the stock prices of companies within this industry. For example, after the 1973 oil crisis broke out, American consumers began to prefer cars, which caused a considerable blow to the American automobile manufacturing industry and the stock price fell sharply.