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Rabbitt Analytics Home
Definitions
Acceleration (Top of Page)
Acceleration rewards companies that have demonstrated superior earnings growth records over the
prior three years and whose earnings are expected to continue growing at stable rates over the
next two years. An acceleration factor rewards companies demonstrating above trend line rates of
growth. The raw growth scores are ranked relative to the universe and a percentile score is
awarded (0-99 / Higher is better).
Average Volume (Top of Page)
This entry represents the average daily trading volume over the past 30 days in thousands of
shares for the selected stock.
Beta (Top of Page)
In general, Beta is a measure of volatility with respect to the market. As it applies to
Q-Look, beta represents an index of risk. It is a measure of the systematic risk associated with
the selected stock. It measures the volatility comparing price movement to the New York Stock
Exchange. A beta of 1 is neutral.
High Risk: beta more than 1.5x. For example, a stock possessing a beta of 1.75 historically
exaggerates market movement by a multiple of 1.75.
Low Risk stocks have betas less than .95. For example, a stock possessing a beta of .95 has
historically only moved 95% as much as the market.
Chart (Top of Page)
The Chart interpretation is the subjective interpretation of a three year price graph for the
selected stock. It is additional to, but not part of Q-Rank.
Consistency (Top of Page)
Consistency identifies companies whose earnings streams have exhibited low volatility and
additionally awards companies which have demonstrated positive earnings over the prior 3 years
combined with the consensus estimated future two years. It is a percentile ranking of a
combination of two parameters as compared to all stocks in the quantitative universe
(0-99 /
Higher is better).
Earnings Sub-Rank (ESR) (Top of Page)
Refers to the Earnings Sub-Rank (ESR) and is a sub-ranking consisting of internal fundamental
variables divided into four categories, earnings surprise/revision, earnings acceleration/growth,
earnings consistency, and valuations. The ESR percentile-ranks these factors compared to all
stocks in the quantitative stock universe (0-99/ Higher is better).
EPS Growth % (Top of Page)
EPS Growth% is based on consensus earnings estimates for the company's next fiscal year and is
included for information purposes only.
Factor Highlights (Top of Page)
| Capitalization |
Big-Cap stocks have market-capitalizations above $2.5 billion. |
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Mid-Cap stocks have market-capitalizations between $1 billion and $3 billion. |
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Small-Cap stocks have market-capitalizations between $300 million and $1 billion. |
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Micro-Cap stocks have market-capitalizations below $300 million. |
| Liquidity |
Liquid stocks have average daily volume (past 30 days) greater than 50,000. |
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Illiquid stocks have average daily volume (past 30 days) less than 50,000. |
| Risk |
High Risk stocks have betas that exceed 1.5x. |
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Low Risk: stocks have betas under .95. |
| Type |
Value Stocks have price earnings ratios (PE) less than the earning growth-rate, and
less than the average PE of the industry to which the company belongs. |
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Growth Stocks have earning growth-rates greater than 25%. |
| ESR |
Pos. ESR is an Earnings Sub-Rank above 75. Earning momentum factors are in the top 75%
of the universe. |
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Low ESR is an Earning Sub-Rank below 30. Earning momentum factors are below 70% of the
universe. |
| EPS Rev |
Pos. EPS rev. is earnings revision scores above 85% of all companies in our 3000 stock
universe. |
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Neg. EPS rev. is earnings revision scores in the worse 15% of all companies in our
3000 stock universe. |
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Pos. surprise is earnings revision scores above 85% of all companies in our 3000 stock
universe. |
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Neg. surprise is earnings revision scores in the worse 15% of all companies in our
3000 stock universe. |
| Consistency |
Consistency is the standard deviation of EPS growth in past 3 years, and next 2 year
estimates. Higher is better. |
| Chart |
Chart is the subjective interpretation of a three year price graph. It is additional
to, but not part of QSR. |
| Industry Position |
Cheap vs. ind. reflects the price earning ratio (PE) below the industry's average PE. |
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Expensive vs. ind. reflects the price earning ratio (PE) above the industry's average
PE. |
| Sector Weight |
Good sector has good value, price, and earnings momentum, and is
"double-weighted" vs. market-neutral. |
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Weak sector has poor value, price, and earnings momentum, and is
"half-weighted" vs. market neutral. |
| Industry |
Industry rank is relative attractiveness to about 130 industries on value,
price-momentum, and EPS momentum. |
Industry PE (Top of Page)
The Industry Price/Earnings entry is the average market-cap weighted PE of all stocks in the
industry.
IndustryRank (Top of Page)
Represents one of about 130 industries to which the company belongs.
Market Capitalization (Top of Page)
Number of common shares outstanding times the price (United States dollars) per share for
the selected stock, expressed in millions. The entry ignores debt, convertibles, and options
outstanding.
Mean Reversal (Top of Page)
Mean Reversal, is a measure of short-term price-reversals based upon a stock's price change
over the preceding two weeks. "Mean-reversal" is the tendency of a stock to revert back toward
its long-term price trend. The top performing stocks in the prior two weeks tend to under
perform over the next two weeks and vice versa. Our studies show a mean reversal score of 90 or
above suggests the potential for short-term out performance; scores of 10 or below suggest
short-term under performance.
Price (Top of Page)
The price of the selected stock in United States dollars on the date indicated.
Price/200-Day Avg. (Top of Page)
The ratio of the current stock price to its 200 day moving average.
Q-Rank (Top of Page)
The Q-Rank is the bottom-line ranking encompassing ten fundamental and
technical disciplines for each security. The scores range from highest (99) to lowest (1). For
example, a stock with a Q-Rank of 99 would have combined factors better than 99% of the stocks
measured. Q-Rank stocks ranked above 90 tend to significantly outperform and would be deemed a
strong buy. Q-Rank ranks from 80-90 would outperform and be deemed a buy. Q-Rank ranks from 70-80
would outperform and be deemed a weak buy. Q-Rank ranks from 60-70 would be deemed a strong hold.
Q-Rank ranks from 40-60 would be deemed a hold. Q-Rank ranks from 30-40 would be deemed a weak hold.
Q-Rank ranks from 20-30 would be deemed a weak sell. Q-Rank ranked stocks ranked under 20 tend to
significantly under perform the market and would be deemed a strong avoid. We believe that
investors considering the purchase of a stock with a Q-Rank under 30 should delay purchase unless
the stock offers an extremely solid value, new product and/or turnaround story. Investors
considering selling a stock with a QSR over 90 should consider holding the stock until its rank
declines.
Relative Strength (Top of Page)
Relative Strength of each security compared to the performance of our quantitative universe.
The relative strength indicator measures the price performance of each security over the past
four quarters compared to the price performance of all 3,000 stocks in our quantitative
universe. The measure is further adjusted by its rate-of-change in the past quarter resulting
in a sloped relative strength figure (favoring accelerating relative strength over decaying
relative strength). Moreover, relative strength is lagged 30 days so it does not counter the
tendency of stocks to mean-reverse. A Relative Strength percentile of 99 indicates that the
stock's price performance in the past four quarters is better than 99% of the quantitative
universe.
Revision/Surprise (Top of Page)
Earnings Surprise/Estimate Revision, measures the standardized surprise of quarterly earnings
reported plus the standardized four-week change in consensus earnings revisions for the next
four quarters. The standardized scores are then percentiled according to their relative universe
ranking. If the rankings label says Surprise it indicates the company reported an earnings
surprise in the past 5 days. The earnings surprise is weighed 50%, the subsequent quarters
earnings revisions 30%, and the next four quarters 20% in the score. If the rankings label says
Revisions it has been at least five trading days since the last earnings report and the score
is calculated as 20% for the last quarters earnings surprise plus 50% for the current quarters
earnings revision plus 30% for the next four quarters. The result is percentile-ranked as
compared to all stocks in the quantitative universe and scored (0-99 / Higher is better).
Sector & Industry Analysis
(Top of Page)
Displays the name of the industrial sector group, such as "basic industries;" and the name of
the industry, such as "aluminum." The sectors were created using cluster analysis in a ten year
study encompassing the price-patterns of about 130 industries.
Sector Weight (Top of Page)
This factor identifies each stock's sector attractiveness based on market-cap-weighted
averages of earnings revision and surprise, price relative strength, price/book ratio,
price/cash-flow ratio, price/sales ratio and dividend yield.
Stock PE (Top of Page)
PE is the price/earnings ratio based on next year's consensus earnings estimate.
Technical Sub-Rank (Top of Page)
Refers to the Technical Sub-Rank (TSR) and is a sub-ranking computed from external priced-based
factors including relative strength (price-leadership), mean-reversal (trading potential),
price/200 day average (trend), and industry leadership. The TSR percentile-ranks these factors
compared to all stocks in the quantitative stock universe (0-99/ Higher is better).
Top 3 Q-Ranked Stock In Industry (Top of Page)
The industries listed here have the highest QSR (Quantitative Stock Rank) in the sector
represented by the selected stock (ticker symbol entry).
Click on one of the three entries to display the stock symbol and relevant data for that stock.
Value Sub-Rank (Top of Page)
Value is the ratio of Wall Streets consensus earnings growth rate over the next year divided by
the expected P/E and percentiled against all stocks in the quantitative universe
(0-99 /Higher
is better).
Disclaimer
The Quantitative Stock Ranking (QSR)
system was inaugurated June 1992 to identify attractive and/or problem
stocks as timely candidates to be researched further for purchase or sale.
The QSR system is intended to complement detailed financial analysis. If a
resulting quantitative rank investigation of a stock is consistent with the
fundamental research, investors have the additional benefit of a second
opinion from this objective outside source. The model's philosophy of
"momentum at a price" is derived by scoring each company's relative
strength, trend, group rotation, earnings consistency, earnings
acceleration, consensus earnings revision, earnings surprise and value
characteristics.
QSR results are theoretical, and thus do not represent an actual trading
portfolio, and are not a "paint-by-numbers" recipe for managing money. QSR
results are to illustrate the predictive power and risk of the model only.
If used in isolation, the QSR model could result in high turnover rates
that would be unacceptable to most investors, and could generate frequent
relative and absolute losses. Also, the QSR ranks will often reflect
concentrations in specific industry groups and economic sectors. Our
experience shows that the QSR can aid equity investors by complementing,
not replacing, thorough individual fundamental stock research.
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