Ratings & Reports
The Ratings & Reports page offers analyst evaluations of your account holdings from Standard & Poor's, Reuters and Market Edge. These evaluations are available to help you track the performance of your account portfolio in the current market and make informed trading decisions. To find Ratings & Reports, hover over My Account and click Ratings & Reports under the Account Analysis heading.
Understanding Your Ratings & Reports
On the Ratings & Reports page, you'll see a S&P Ranking®, Reuters Rating® and the Market Edge® Opinion. We offer a variety of different reports to help you execute your personal strategy. For example, you may choose to track Market Edge reports if you're looking for technical analysis evaluations of the market. In contrast, Reuters reports will offer fundamental analysis for traders seeking information on earnings, common valuation ratios, corporate governance and other fundamentals. Each type of analysis is explained below to help you understand the information provided and how it can be used to evaluate your positions.
Standard & Poor's analysts use the STARS method (Stock Appreciation Ranking System) to rank securities on a one-to-five star scale. Based on an evaluation of a security's earnings, sales, products, management and other indicators, S&P uses stars to represent the security's perceived potential to increase in value over the next 6 months to a year.
The S&P STARS Categories
- Five Stars - S&P analysts expect the security's total return to outperform the total return of the S&P 500 by a wide margin.
- Four Stars - S&P analysts expect the security's total return to outperform the total return of the S&P 500 by a smaller margin.
- Three Stars - S&P analysts expect the security's total return to be approximately the same as the S&P 500's total return.
- Two Stars - S&P analysts expect the security's total return to be less than the total return of the S&P 500.
- One Star - S&P analysts expect the security's total return to underperform the total return of the S&P 500 by a wider margin than two-star stocks.
Typically, third-party research providers have collectively used the S&P STARS categories to determine buy, hold or sell signals. Four- and 5-star stocks are classified as investments to buy; 3-star investments are classified as investments to hold and 1- and 2-star investments as investments to sell.
Thomson Reuters analyzes stocks according to 6 different components: earnings, fundamentals, relative valuation, risk, price momentum and insider trading. Reuters analysts give an average rating of each component on a 1-to-10 scale. Those individual numbers are then combined to create an overall average that's used to rank investments as positive, neutral or negative.
Reuters Rating Scale
Stocks with a combined average of 8-10 are rated as Positive, 4-7 as Neutral, and 1-3 as Negative.
Like the S&P Rankings, we provide Reuters Ratings to help you evaluate your investments according to the views and expectations of market analysts. To see the numeric rating of an investment, view the Reuters PDF Report.
Market Edge Opinion
Market Edge research attempts to evaluate the performance of securities to identify market conditions that make investing in a particular equity favorable. Based on their Second Opinion Weekly analysis model, Market Edge conducts quantitative or technical analysis that measures market risk. The result is the Market Edge Opinion, which is displayed as either Long, Neutral or Avoid where each opinion correlates to the level of market risk associated with an equity.
- Long - Market risk is low.
- Neutral - Market risk is moderate.
- Neutral from Long - Market risk has increased since the last time the security was analyzed.
- Neutral from Avoid - Market risk has decreased since the last time the security was analyzed.
- Avoid - Market risk is high.
It's important to carefully evaluate the risk associated with an investment to determine whether or not the investment fits into your personal risk comfort level and meets your financial objectives.
When an analyst evaluation is available for one of your positions, a previous and current evaluation will be displayed in the S&P Ranking, Reuters Rating and Market Edge Opinion columns. Comparing the previous evaluation to the current one may help you make assumptions about the direction your investment is heading.
For example, if you see that one of your stocks went from a long opinion to an opinion of neutral in the Market Edge Opinion column, you might conclude that the market risk associated with your position has increased. Knowing that the risk associated with a position has increased may cause you to monitor the security more closely and/or evaluate your personal buy/hold/sell strategy.
After viewing the S&P Ranking, Reuters Rating and Market Edge Opinion on your Positions page, you may want more in-depth information. You can download a detailed PDF report from each of the third-party analyst providers specific to any of your positions. Reports are updated weekly.
To Download a PDF Report:
- Go to the View Current Analyst Reports column and open the Select drop-down menu.
- Choose the party from which you want to see a report.
- Click OK if you're prompted to verify the download process.
For continued research opportunities, visit the Quotes & Research tab of your account.
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