A fundamental investor may analyze a company’s ability to generate profit and sales growth, and reduce expenses (cost-cutting measures), which can influence a company’s profits. He may also analyze macroeconomic variables such as jobs reports, trade data, oil prices, and interest rates in order to predict a stock’s future price. Fundamental investors also analyze a company’s inherent value, and try to discern if the shares trade at a premium or discount to this valuation of the company.