Why do we need a fundamental analysis of stocks?

In fundamental analysis, analysts consider three types of data related to the company, i.e., i) historical data to enquire how things were in the past, ii) mandatory disclosed information available in the public domain like annual reports, events, and announcements of the company, iii) facts that are not widely known. This information is dissected and analysed systematically to extract definite financial prospects and viability of the company. Sometimes, some legal litigations affect the price of the stock, which is eventually analysed, so that investors can make proper decisions. Generally, fundamental analysis helps the investor predict the long-term trend of the share price in the market.