STOCKSCOUTER® OVERVIEW
The StockScouter® System by Verus Analytics is a proprietary stock scoring model which covers companies listed on the major U.S. exchanges, currently totaling approximately 4,600. Four Core models form the initial basis for a stock’s rating or score, with each Core model separately examining Fundamental, Technical, Ownership, and Valuation characteristics. Then, a Risk model is applied to derive the overall StockScouter score, which is based on the security’s expected risk and return.
METHODOLOGY
The StockScouter System starts with four Core models: Fundamental, Valuation, Technical, and Ownership. Each core model is given a grade ranging from A to F (where A is most favorable, and F is least favorable).
The Fundamental model considers key indicators of the direction and momentum of earnings.
The Valuation model evaluates proven ratios that capture the total company capitalization relative to revenues and P/E ratios relative to earnings growth.
The Technical model utilizes momentum and trend following indicators such as relative strength indices and moving averages.
The Ownership model assesses changes in sentiment by company management and institutional shareholders.
The Risk model assesses stock price volatility and adjusts the combined Core model grade accordingly.
The overall StockScouter score ranges from 10 to 1, with 10 indicating strong expected returns and relatively low risk and 1 indicating poor expected returns and relatively high risk.
Positive/concern LANGUAGE
Describes the state of each core model variable in sentence format, is categorized as positive, neutral or negative, and provides context to assist investors in understanding the key drivers of the Core model grades.
StockScouter FAQ for more information.
Disclaimer: StockScouter is a registered trademark of Verus Analytics, Inc. All Verus Analytics materials available through this site are published solely for informational purposes and are not to be construed as advice or a recommendation to specific individuals. Individuals should take into account their personal financial circumstances in acting on any rankings or stock selections provided by Verus Analytics. Verus Analytics makes no representations that the techniques used in its rankings or selections will result in or guarantee profits in trading. Trading involves risk, including possible loss of principal and other losses, and past performance is no indication of future results. Verus Analytics may have previously distributed the information in its reports and analyses in different forms.
