What are Quant Ratings and how do I use them?

Quant Ratings are an objective evaluation of each stock based on data, such as the company’s financial statements, the stock’s price performance, and analysts’ estimates of the company’s future revenue and earnings.

Over 100 metrics for each stock are compared to the same metrics for the other stocks in its sector. The stock is then assigned a rating (Strong Sell, Sell, Hold, Buy, or Strong Buy) and a score (from 1.0 to 5.0, where 1.0 is Strong Sell and 5.0 is Strong Buy).

Seeking Alpha grades each stock by five “factors” - Value, Growth, Profitability, Momentum, and EPS Revisions. To do this, we compare the relevant metrics for the factor in question for the stock to the same metrics for the other stocks in its sector. The factor is then assigned a grade, from A+ to F. The grades symbolize the strength of how a stock scores against the sector.

Quant ratings are provided on every stock symbol page and by clicking the 'Ratings' tab.

Image 67942

On every symbol page, you can clearly see the underlying metrics that lead up to each of the Factor Grades, which then add up to the overall Quant grade.

Image 105063

We also provide Quant Ratings History to provide clarity on when the overall Quant Rating changed, and what the underlying metrics were that contributed to that change.

Image 67944

Hovering over any dot on the chart will bring up that day’s Overall Quant Rating and the underlying Factor Grades.

Image 67946

We have also added a predefined list of Top Stocks by Quant.

If you are not a subscriber to Premium yet, you can experience our full range of subscriber-only features by signing up from Premium.

This article was helpful for 15 people. Is this article helpful for you?