We use both fundamental and technical analysis
Our methodology is probably one of the most in depth and comprehensive you can currently find in the market! It is primarily built on the foundations of fundamental research but not just restricted on that! Stock prices tend to track the growth of corporate earnings, which of course itself tends to be driven by economic growth, over the long term, making both economic and earnings growth important considerations in the forecasting of stock performance
different parameters are considered in our stock assessment
We ballpark how much the company is worth today and compare this to current price. This is done using both, quantitative analysis of the company fundamentals as well as its intrinsic market price estimation to project the real value. We also take into consideration other essential factors such as management style, expertise, tenure, as well as current capital structure, and future earnings potential.
We check different measures of market premium (alpha and beta) for all equities. This helps investors analyze the systematic and unsystematic risks associated with investing in a stock over a specified time horizon. A high alpha is a sign of good performance; however, a high beta may signal increased volatility and potential future overvaluation.
We use fundamental data for a company to approximate Piotroski F score, determined by combining scores from fundamental categories: profitability, efficiency, and funding
Earnings estimate revisions are one of the most powerful drivers of stock prices changes. We therefore carefully take into consideration any earnings estimate revisions in our stock rating exercise.
We analyze and use investor sentiment around taking a position in each stock. This speculative approach is based exclusively on the idea that markets are driven by emotions such as investor fear and greed. The fear of missing out, can cause potential investors to buy a stock at a price that has no basis in reality. In that case, they are not buying the stock because it is a good investment, but because they need to do something to avoid the feeling of missing out. On the other hand, investors will often sell stocks at prices well below their value during bear markets because they need to stop feeling the pain of losing money.
We track the recommendations and performance of top financial experts across the globe. We take this data into consideration.
We take into consideration the relative strength of stock using its RSI index, which is a momentum indicator used in technical analysis. The RSI measures the magnitude of recent price changes to evaluate overbought or oversold conditions in the price of a stock or other asset.
We fully analyze financials of the company for specific investment periods. Based on this we are then able to track changes in a stock’s individual financial statements over time to develop a better understanding of its risk, liquidity, profitability and other critical and vital indicators. This enables assessing the odds of distress for a stock.
Stock volatility depicts how high the prices fluctuate around its average price. In other words, it is a statistical measure of the distribution of a stock’s daily returns, and it is calculated using variance and standard deviation.
What can we do for you
Our service features our top recommendations from the stock market. We believe that our recommendations could benefit you as they are immediate investible ideas irrespectively of whether you are an experienced investor or just a newbie!
Let us help you take control of your financial future! Try econvestor today!