Our ratings econvestor September 18, 2021

Our specially designed rating system is focused on adding value to your performance

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In order for econvestor to reach an opinion and communicate our rating for a stock we research multiple factors such as the financial statements, earnings, volatility, valuations, relative strength index, economic sensitivity, analyst consensus and many others. You can find a more comprehensive list on our methodology page. Based on the above research system a score is continuously allocated to each stock ranging from +70 to -70. In accordance with score, we then offer a comprehensive scale of ratings.

The following is a guide to our stock-research ratings system:

ALL-IN BUY

A tiny subset of star buy rated companies representing the best of the best stocks in the market. They are expected to hugely outperform the market over 6-12 months; they provide the amazing risk-reward ratios and represent about 0.1 percent of all the stocks we monitor. All-in buy recommendations are very rare and appear only 2 to 3 times over the course of a year. Minimum econvestor score needed to qualify a stock as an all-in buy is +62.5%.

STAR BUY

A subset of strong buy rated companies representing the best in the strong buy category. They are expected to significantly outperform the market over 6-12 months; they provide the best risk-reward ratios and represent about 1 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is +45%.

STRONG BUY

Expected to materially outperform the market over 6-12 months. They represent about 4 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is +35%.

BUY

Expected to outperform the market over 6-12 months. They represent about 5 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is +30%.

STRONG HOLD

Expected to slightly outperform the market over 6-12 months. They represent about 15 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is +20%.

HOLD

Expected to perform approximately as the market over 6-12 months. They represent about 20 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is +10

CAUTIOUS HOLD

Expected to slightly underperform the market over 6-12 months. They represent about 15 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is +0%.

SELL

Expected to underperform the market over 6-12 months. They represent about 15 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is -20%.

STRONG SELL

Expected to materially underperform the market over 6-12 months. They represent about 15 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is -40%.

JUNK SELL

A subset of strong sell rated companies representing the worst in the strong sell category. They are expected to significantly underperform the market over 6-12 months; they provide the worst risk-reward ratios and represent about 10 percent of all the stocks we monitor. Minimum econvestor score needed to qualify a stock as a star buy is -70%.

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!

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