Stock Analyzer: Design Summary and Purpose

The Stock Analyzer is a powerful, AI-augmented financial research tool built with Gradio, integrating real-time stock data, valuation metrics, AI-generated insights, and visual analytics. It is designed to help investors evaluate individual stocks through a blend of fundamental analysis and natural language interpretation.

Development Summary

  • Framework & UI: Built with Gradio Blocks and Tabs to organize the app into clear functional areas: Summary, Valuation, Financial Health, Sector Comparison, Charting, and AI Q&A.

  • Live Data: Integrates with Polygon.io API to fetch:

    • Company metadata

    • Historical stock prices

    • Dividends

    • Real-time valuation ratios

  • Valuation Engine:

    • Computes key ratios: P/E, P/S, P/B, PEG, Dividend Yield

    • Simulates financial metrics like FCF, ROE, Beta using numpy for plausible defaults

    • Includes sector-wise ratio benchmarking with emoji-coded performance indicators

  • AI Summary & Q&A:

    • Uses Hugging Face Mistral-7B model to generate readable, plain-English summaries

    • Offers an interactive prompt to ask custom investing-related questions

  • Visual Output:

    • Smoothed stock price charts via matplotlib

    • Clean DataFrames for company snapshots, ratios, health metrics, and peer comparisons

  • Utility Features:

    • Reset button to clear inputs and outputs

    • Report generation stub (Download Report placeholder)

Purpose

This app is designed to support:

  • Retail and professional investors in evaluating public equities

  • Financial analysts conducting quick comparative analysis

  • Beginner investors learning the meaning behind ratios and performance indicators

  • AI-driven exploration of investment questions using a conversational layer

By combining financial logic, market data, and LLM summaries, the app bridges the gap between raw numbers and strategic insight—enabling smarter, faster investment research.