Our Quant Ratings and Factor Grades currently cover about 5,600 stocks. Which stocks are covered and which aren’t? Because the market adjusts a sector’s aggregate valuation based on its profitability and growth rate, a stock’s sector-relative Quant Ratings and Factor Grades are therefore a good indicator of its overall attractiveness. Comparing a stock to others in its sector is therefore more relevant and informative than comparing it to stocks in other sectors. Why do they compare stocks of the same sector?ĭifferent sectors have different aggregate profitability and growth rates, and therefore trade at different average valuations. The overall Quant Rating therefore attempts to identify mis-pricing and timeliness in a single rating, and that’s actionable for both long term and short term investors. Even deep value investors are aware that securities can remain mis-priced for long periods of time without a catalyst. Timeliness isn’t only for short term investors. The Value, Growth and Profitability factors identify mis-priced securities, and the Momentum and EPS Revisions factors identify timeliness. The Quant Ratings and Factor Grades are appropriate for both short and long term investors. Are they for short-term or long-term investors? Steve is now Seeking Alpha's Head of Quant Strategy. Steve has 30 years of experience in equity research, quant strategies and risk management, and founded quant hedge fund Cress Capital Management. Seeking Alpha's Quant Ratings and Factor Grades are designed and managed by Steve Cress. You can quickly see where a stock is strong or weak, and with one click you can view the underlying data and sector averages to perform your own evaluation. This makes it easy to find or rule out stocks based on your investment criteria.įor investors wanting to do more research, the Quant Ratings and Factor Grades provide a springboard for further research. Seeking Alpha’s Quant Ratings Factor Grades provide investors with an instant characterization of each stock. The factor is then assigned a grade, from A+ to F. To do this, we compare the relevant metrics for the factor in question for the stock to the same metrics for the other stocks in its sector. Seeking Alpha grades each stock by five “factors” - Value, Growth, Profitability, Momentum and EPS Revisions. The stock is then assigned a rating (Strong Sell, Sell, Hold, Buy or Strong Buy), and a score (from 1.0 to 5.0, where 1.0 is Strong Sell and 5.0 is Strong Buy). Over 100 metrics for each stock are compared to the same metrics for the other stocks in its sector. Seeking Alpha’s Quant Ratings are an objective, unemotional evaluation of each stock based on data, such as the company’s financial statements, the stock’s price performance, and analysts’ estimates of the company’s future revenue and earnings. Panuwat Dangsungnoen/iStock via Getty Images What are Quant Ratings & Factor Grades?
0 Comments
Leave a Reply. |
AuthorWrite something about yourself. No need to be fancy, just an overview. ArchivesCategories |