Author(s)

Yang Zhoufan

Corresponding Author

Yang Zhoufan

ABSTRACT

Since stock price reflects the operating conditions of listed companies, the epidemic in early 2020 made the fluctuation of stock prices more uncertain. In this paper, we take the data of listed companies on the Shenzhen Main Board in the first quarter of 2020. For the seven financial indicators, we adopt principal component analysis and factor analysis to extract components to calculate the score. Comparing these two methods, we find that factor analysis performances better in this case. On this basis, companies are classified by their performance through cluster analysis. It is found that in the first quarter of 2020, despite the influence of the epidemic, large-scale enterprises still behave well, especially those in the pharmaceutical and consumer goods industries. However, small enterprises, especially in the tourism industry and catering industry, are severely affected by the epidemic. Based on the findings, we give suggestions to investors.

KEYWORDS

Principal Component Analysis, Factor Analysis, Cluster Analysis, Investment Value