How it is worked out
Strong Outperform and Outperform: the price is well below our estimated fair value and the fundamentals score is high enough. Market Perform: no other rung applies, usually because the price is near the estimated fair value. Monitor: no published fair-value estimate, or a high score without enough margin of safety. Underperform and Strong Underperform: a low fundamentals score, or a price well above the estimated fair value. The language model does not choose them: software sets them from the margin of safety and the fundamentals score, with the thresholds the methodology publishes.
How to read it
- They say where the price stands against our estimate, the same for everyone. They are not a forecast of how the stock will do against the S&P 500, and not personal recommendations to buy or sell.
- Every rating is recorded publicly with its price and date in the recommendation history. The positive ones are measured in the track record and the negative ones on a page of their own. Market Perform and Monitor are measured in neither.
Example
An Outperform analysis at $100 is recorded and compared with the S&P 500 from that day.