Industry group data is a powerful tool for following the big-picture market trends before you begin micro-analyzing individual stocks. TeleChart has its own unique industry group averages (with volume) based on the Hemscott industry group classification.
The WatchList titled “Hemscott Industry Averages” contains all of the industry and sub-industry averages. Each chart contains price and volume information representing weighted averages of the stocks in each industry and sub-industry. The weighting is based on the square root of each stock’s capitalization. Using the square root of the capitalization allows the stocks with the larger capitalization to influence the resulting average more, without completely overshadowing some of the smaller cap components.
Industry group information for each stock is displayed at the top of the chart to right of the company name. Industry groups are made up of a main group and a sub group. You can see in the example below that for IBM, the main group is "Computer Hardware", and the sub group is "Diversified Computer Systems".
TeleChart contains industry averages for every main and sub group in the system (over 230 industry group averages!) You can find a listing of these averages in the "Hemscott Industry Groups" WatchList.
Now that you have all of this information, how do you use it effectively? Just click on the industry group name for a given stock to see the industry group menu. Just click on each of the menu items below for a brief description of its functionality.
Click here for an example of using industry averages to find solid performing stocks.