Weekly Top Picks: These stocks scored 10 on 10 on Stock Reports Plus
Stock Reports Plus, powered by Refinitiv, undertakes detailed company analysis for 4,000+ listed stocks. In addition to detailed company analysis, the report also collates analysts’ forecasts and trend analysis for each component. An average score in Stock Reports Plus is calculated by undertaking quantitative analysis of five key investment tools — earnings, fundamentals, relative valuation, risk and price momentum.
Earnings rating is calculated based on three factors — earnings surprises, estimate revisions and recommendation changes.
Comparing company’s actual earnings to the mean expectation of analysts results in a difference which is referred to as ‘Positive’ or ‘Negative Surprise’. The report takes into account surprises from the past 4 quarters. Estimate revisions are the number of up and down revisions in earnings per share of the company by the analysts and the average percentage change of those revisions.
Profitability, debt, earnings quality and dividend trends are evaluated under the fundamentals component in the report.
Each sub-component is given equal weightage to be ranked on a scale of 1 to 10. Relative valuation has three components — price to sales (50% weight), trailing P/E (25% weight) and forward P/E (25% weight). These metrics are evaluated against the overall market, index and company’s own historic 5-year averages.
Risk score by evaluating a series of long term (5-year) and short term (90-day) stock performance measures including volatility, magnitude of returns, beta and correlation.
