Sentiment may also count. For example, when the owners of the Boston Celtics basketball team offered shares of stock in 1986, analysts suggested that the stock was overvalued. Another important factor to consider is the health of a company's whole industry. For example, a company may be doing well financially, but if its industry is declining, investors might question the company's ability to keep growing. In that case, the company's stock price may fall.
Many industries expand and contract in cycles.
For example, home building declines when interest rates rise. The information presented has been obtained from sources considered to be reliable, but it is not purported to be complete or without error.