red: At your service .... IBD RATINGS EXPLANATION -
CPQ as of 1/29/99 - EPS 50, RS 92, Industry Group Strength - A, SMR Rating - A, A/D Rating - B
EPS: EPS Rating measures each companies short and long term earnings growth rate relative to every other company in the IBD database (which I believe is just about every stock!), First, the two most recent quarters' earnings are compared with the same two quarters' one year ago (short term). Then, we examine the company's annual earnings growth rate for the past 5, 4, or 3 years depending on history available (long term). The results are compared to all other companies and related on a percentile scale from 1 to 99, with 99 being the best. For example, a stock with a 90 EPS rating outperformed 90% of all other stocks in earnings growth.
RS: Measures each stock's price change over the last 12 months (too long for me) and compares it to all other stocks. The results are rated on a percentile scale from 1 to 99, with 99 representing the strongest performance. For example, a stock with a 90 RS Rating outperformed 90% of all other stocks in price performance over the past 12 months.
Industry Group RS: Compares the stock's industry group price performance over the past 6 months to the other 196 industry groups. A = top 20%, B = top 40%, etc. with E = bottom 20%.
SMR Rating (Sales + Profit Margins + ROE): Rating combines in one simple A to E rating (‘A' being the best, representing the top 20% of all stocks), four fundamental factors used by all analysts today … a company's sales growth rate over the last 3 quarters, before- and after-tax profit margins, and return on equity. Sales growth and after-tax margins are computed using quarterly figures, and ROE and pre-tax margins are annual. All four factors take into account acceleration (rate of increase).
Accumulation/Distribution Rating: Uses a proprietary formula to analyze each stock's daily price and volume changes in the latest 13 weeks to determine if the stock has been under net accumulation (buying) or distribution (selling). ‘A' and ‘B' ratings indicate heavy to moderate buying: ‘C' shows a neutral balance of buying and selling; and ‘D' and ‘E' indicate moderate to heavy selling. Since institutions exert the largest influence on many stocks' price and volume, an ‘A' or ‘B' rating may indicate buying by institutional investors. |
