Financial analysts have long relied on traditional sources of data, such as company filings, to track trends in the stock market and investments. But, leveraging web data extraction of non-traditional sources can put you ahead of the trends in the sectors you manage.
While anyone can leverage readily-available information on the web, it’s tedious to research and sift through the information to turn the data into something useable. Data extraction of non-traditional web sources can help you quickly gather large amounts of data to help refine equity and finance research and recommendations. If you’re looking for new ways to improve the efficiency of your role as a financial analyst, here’s how to leverage web data extraction for success.
Figuring out how well a start-up will perform financially requires taking the time to research multiple moving parts. Combing through websites like Angel List and TechCrunch yields valuable information, including what rounds of funding a startup has and information on the founders. However, it takes an incredible amount of man hours to pull all of the information together on multiple start-ups to decide which to invest in.
Financial analysts and venture capitalists can rely on data extraction to sort through data on various finances, funding information, legal research and more to make the informed decisions needed before investing. Data extraction can dramatically reduce the time spent on research while improving efficiency and the accuracy of the information collected.
Researching the Stock Market
Researching the stock market is a popular way to use data extraction, but it can yield an overwhelming amount of data and options. Financial analysts can start with sites like Yahoo Finance to extract data from stocks and resources.
Once the data is collected, data extraction can also help organize and categorize the information for financial analysts to digest. The data goes beyond the latest trends and can help analysts better predict and refine the investment approach.
Finding Trends on Social Media
Social media may not be the first thing financial analysts think of when data extraction. But today’s financial analysts are leveraging social media to predict how the activity and buzz around a specific stock or product can impact its performance on the market.
For example, the research firm Eagle Alpha scraped through 7,416 comments on Reddit’s gaming thread to predict Electronic Arts would sell more of its Star Wars video game than projected. Financial analysts can set their data extraction strategies to focus on social media platforms where their customer base is already engaging. Extract data from platforms like Snapchat to see what the buzz is on products and services appealing to college students. Meanwhile, Baby Boomers can usually be found on Facebook.
Identifying New Products and Services
Growing a business could require finding new products and services. But, figuring out how to dig deeper and identify competitor pricing and production options is a time-consuming process. Instead of relying on a manual review of all of your competitors, financial analysts can use data extraction to compile the information they really need to assess a new business venture. Extracting web data on retail sites to gather wholesale and retail pricing and competitors’ information can also help create a strategy on what products or services to add.
Parsing Income Statements
It’s common for financial analysts to study income statements and other financials to assess their competition or a potential business venture. data extraction a site like NASDAQ or Yahoo Finance assists investors with published information about a company, including Income Statements, Balance Sheets, Statements of Cash Flow and Financial Ratios.
Understanding Industry Trends
Staying on top of what’s going on in your industry can help inform your financial recommendations, from investing in new companies to switching gears on stocks. But making time to keep an eye on those trends often falls to the wayside in favor of more immediate decisions. Data extraction can pull together the latest industry topics and trends to help you stay on top of what’s going on in the sectors you manage.
Regardless of how you leverage data extraction as a financial analyst, the real point is to make your research more efficient and less time consuming so you can focus on more immediate needs at your company. Chart out where you spend the most time researching and look to see how data extraction can alleviate that burden while maximizing the return on the data you collect.
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