Academic Master

Business and Finance

A comparative evaluation of the stock market risks and returns, referencing the leading corporations


The stock market is a collection of markets where trading and issuing equities and other securities takes place. The stock market is one of the most important tools of a free-market economy, as it gives companies access to capital in exchange for giving a fraction of ownership to investors.
The stock market works in two ways. First, new shares are issued through initial public offerings. Secondly, the shares of registered companies are traded by investors. The trading of shares does not bring any money to the company, though.

The Stock Market might be a free market; however, it is regulated by the Federal Government and is not rigged. Investors trade stocks of registered companies based on the information available on the market. This information can be related to the country’s politics and economy, the company’s current activities and future plans, or the impact of a competitor’s activities.

About The Report

To understand a country’s stock market and the probability of earning profit or loss, it is advised to study the analysis reports. Such analysis reports give a clear picture of where the market stands.

In this report, I have done a comparative analysis of the performances of a few companies listed on the stock market. These companies are considered the market leaders; listed on Nasdaq and NYSE, they are some of the largest companies in the United States of America with market capitalization going in billions of dollars.

Comparative Analysis Of Companies Listed On The Stock Market

I have picked Target Corporation, Google, T-Mobile, Wal-Mart, and Starbucks Corporation. They all have hundreds of investors who have invested large amounts of money; in case of any profit or loss, they are all affected.

Analyzing these companies will give me a clear picture of the U.S. stock market. Besides, it will also show me which company is performing better and should be invested in it. I will also discuss the impacts of various events that may impact the performance of a company’s stock.

Below is a table that shows which company’s stock prices changed the most during a week, this chart gives stock prices from June 19, 2017, up till September 8, 2017;

 DATE Wk Open Wk Close Wk Open Wk Close Wk Open Wk Close Wk Open Wk Close Wk Open Wk Close Sig. Stock
Jun19-Jun 23 950 965.59 63.6 63.4 75.38 74.84 60.35 59.81 52.87 50.76 Google
Jun26-Jun30 969.9 908.73 63.6 60.62 74.95 75.68 60.02 58.31 50.83 52.29 Google
Jul 3-Jul 7 912.2 918.59 60.74 60.01 75.84 75.33 58.9 58.04 52.53 51.07 Google
Jul 10-Jul14 921.8 955.99 60.07 61.24 75.15 76.34 58.18 58.76 51.15 53.23 Google
Jul 17-Jul 21 957 972.92 61.04 62.58 76.29 76.15 58.73 57.98 53.23 54.84 Google
Jul 24-Jul 28 972.2 941.53 62.39 61.78 76.03 79.81 58 54 54.65 56.11 Google
Jul 31-Aug 4 941.9 927.96 62.25 64.52 79.82 80.48 54.48 55.44 56.34 57.58 Google
Aug7-Aug11 929.1 914.39 64.85 63.61 80.57 80.4 55.6 53.18 57.57 55.65 Google
Aug14-Aug18 922.5 910.67 64.19 63 80.59 79.31 53.6 52.7 55.4 55.65 Google
Aug21-Aug25 910 915.89 63.49 63.74 79.12 78.63 53.14 54.36 55.86 55.01 Google
Aug28-Sep1 916 937.34 64 64.16 78.41 78.37 54.54 54.93 54.62 56.22 Google
Sep5-Sep8 933.1 926.5 64.17 62.74 77.95 78.88 54.95 53.49 56.13 57.27 Google


Discussion On Weekly Stock Price Changes

In the previous section there is a table which shows opening stock prices of every Monday morning and closing prices of every Friday evening. The table lists data from Jun 19, 2017, to September 8, 2017.

  • The table shows that all companies’ stock prices changed during the week; however, Google witnessed significant price changes. An analysis of Google’s volatility shows that the stock is very volatile; with a beta of 0.98. Such a high volatility means that the stock is significantly risky. Though, as the saying goes by; the higher the risk the higher the return (Investopedia, 2017).

The high volatility of the Google stock and the chances of earning a high return have made the stock a lucrative option for traders; hence, the high volume of day traders. However, the exceptionally impressive performance of Google Inc. also counts as a reason for the good performance of the stock.

  • Other companies’ performance indicators show a totally different story. Companies like T-Mobile have a beta of 0.23 with low share prices. This shows that the company’s image in the eyes of the traders is not so good probably because the company is facing scrutiny over its employee’s working conditions (“One Reason Why T-Mobile (TMUS) Stock Is Down Today – TheStreet,” n.d.).

There is also news that the company is facing tough business. Quite recently it has come to my knowledge that Sprint Corp.; an American telecommunications company, might have pushed back a possible deal with T-Mobile (“T-Mobile Gets a Surprise From Sprint, and Now Its Stock Is Falling – TheStreet,” n.d.). It seems that this news has had an adverse effect on the company’s stock and currently the investors are only interested in selling it.

  • Financial reports show that Wal-Mart has a beta of 0.05, which is way lower than other stocks. Such a low beta will discourage investors from buying it and will be a strong sell.

A recent news report shows Amazon’s intentions to acquire Whole Foods Market, which means that Walmart’s status of having Every Day Low Prices might soon be snatched away from it. As Amazon enters the grocery business there is expected to be tough competition in the near future among the two retail giants (“Why Shares of Wal-Mart Stores Are down Today — The Motley Fool,” n.d.).

  • Starbucks’ beta shows a moderate value, of 0.64. Maybe the market has responded to the latest news of Starbucks introducing its Pumpkin Spiced Latte (“Pumpkin Spice Glut Arrives Earlier Than Ever – The New York Times,” n.d.). It might also mean that the market has not responded and the stock might be good for a long-term investment.
  • As far as Target is concerned, shares have underperformed this year because of strict competition from other giants like Wal-Mart and Amazon (“Target has a ‘viable’ strategy to compete with Amazon: Analyst,” n.d.). This competition has very severely affected Target’s shares. However, market gurus claim that we might soon hear good news. (“Target Corporation (TGT) Stock Finally Shows a Glimmer of Promise,” 2017)


Looking at the information above, it is evident that the one stock that can give us significant returns through trading is Google. It is a highly volatile and risky stock, but there is this saying: the higher the risk, the higher the return.

Other stocks are not so lucrative for trading. However, Starbucks’ stocks are moderately volatile and might be good for long-term investment, especially for those in it for dividends.


Investopedia. (2017, September 6). Is Google a Good Investment? Retrieved September 12, 2017, from

One Reason Why T-Mobile (TMUS) Stock is Down Today – TheStreet. (n.d.). Retrieved September 12, 2017, from

Pumpkin Spice Glut Arrives Earlier Than Ever – The New York Times. (n.d.). Retrieved September 12, 2017, from

Target Corporation (TGT) Stock Finally Shows a Glimmer of Promise. (2017, August 16). Retrieved September 12, 2017, from

Target has a ‘viable’ strategy to compete with Amazon: Analyst. (n.d.). Retrieved September 12, 2017, from

T-Mobile Gets a Surprise From Sprint and Now Its Stock Is Falling – TheStreet. (n.d.). Retrieved September 12, 2017, from

Why Shares of Wal-Mart Stores Are Down Today — The Motley Fool. (n.d.). Retrieved September 12, 2017, from



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