Fundamental analysis observes numerous elements that affect stock prices such as sales, price to earnings (P/E) ratio, profits, earnings per share (EPS), as well as macroeconomic and industry-specific factors. The fundamental analyst observes trends, market and price movements, company financial statements, interest rates, return on equity (ROE), and numerous other indicators with one goal in mind: buying or selling stocks that will provide a high return on investment (ROI)