We are independent & ad-supported. We may earn a commission for purchases made through our links.
Advertiser Disclosure
Our website is an independent, advertising-supported platform. We provide our content free of charge to our readers, and to keep it that way, we rely on revenue generated through advertisements and affiliate partnerships. This means that when you click on certain links on our site and make a purchase, we may earn a commission. Learn more.
How We Make Money
We sustain our operations through affiliate commissions and advertising. If you click on an affiliate link and make a purchase, we may receive a commission from the merchant at no additional cost to you. We also display advertisements on our website, which help generate revenue to support our work and keep our content free for readers. Our editorial team operates independently of our advertising and affiliate partnerships to ensure that our content remains unbiased and focused on providing you with the best information and recommendations based on thorough research and honest evaluations. To remain transparent, we’ve provided a list of our current affiliate partners here.
Accounting

Our Promise to you

Founded in 2002, our company has been a trusted resource for readers seeking informative and engaging content. Our dedication to quality remains unwavering—and will never change. We follow a strict editorial policy, ensuring that our content is authored by highly qualified professionals and edited by subject matter experts. This guarantees that everything we publish is objective, accurate, and trustworthy.

Over the years, we've refined our approach to cover a wide range of topics, providing readers with reliable and practical advice to enhance their knowledge and skills. That's why millions of readers turn to us each year. Join us in celebrating the joy of learning, guided by standards you can trust.

What is Historical Data?

Gerelyn Terzo
By
Updated: May 16, 2024
Views: 6,951
Share

Sometimes, the best way to gauge how a financial investment will fare in the future is to take a look at how the investment has fared in the past. By viewing historical data, or past information on the performance of a stock as measured by profitability and revenue growth in addition to trading activity, an investor can tell the difference between a winning investment and a losing investment. Although there are no guarantees when investing in the stock market, investment professionals such as market technicians rely on historical data, and such information can benefit small investors, too.

By studying historical data surrounding stock market activity, investors are more likely to uncover trends that can help determine the best time to invest. Certain trends to look out for might include the way that a stock performs during an economic pullback or conversely during booming economic times. Also, historical data will illustrate to investors the highest-ever stock price that a company has achieved. It also will reveal the lowest value that the stock has ever had. By considering this historical data, investors can formulate a trading range that is based on historical performance and is feasible to expect with that investment.

Some of the common time periods used for looking back include six-month, one-year and three-year intervals. An investor can view the information in terms of price data using numbers obtained from an investment website or by utilizing the charting capability on such a website. By viewing historical data in number form, the investor can see how a stock has performed since the first day it began trading in the public markets. The same can be achieved with a chart or graph, but these illustrations tend to be easier on the eyes and will illustrate in pictures the trading health of that company.

Some of the key areas of historical data to view include past earnings performance and revenue growth. Earnings are a representation of a company’s profitability, and they give investors an indication of a reasonable profit picture. Usually, a company will list its past earnings data on the investor relations page of its website, and the same applies to revenue growth.

The future of a company is dependent on many factors and can be unpredictable. By considering historical data, however, investors can gain a glimpse into what the company has delivered in the past. This can help an investor determine whether a potential investment lines up with the amount of risk and unpredictability he or she can handle.

Share
SmartCapitalMind is dedicated to providing accurate and trustworthy information. We carefully select reputable sources and employ a rigorous fact-checking process to maintain the highest standards. To learn more about our commitment to accuracy, read our editorial process.
Gerelyn Terzo
By Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in Mass Communication/Media Studies, she crafts compelling content for multiple publications, showcasing her deep understanding of various industries and her ability to effectively communicate complex topics to target audiences.
Discussion Comments
Gerelyn Terzo
Gerelyn Terzo
Gerelyn Terzo, a journalist with over 20 years of experience, brings her expertise to her writing. With a background in...
Learn more
Share
https://www.smartcapitalmind.com/what-is-historical-data.htm
Copy this link
SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.

SmartCapitalMind, in your inbox

Our latest articles, guides, and more, delivered daily.