Torvanta

How Torvanta's stock ratings work

Every company Torvanta covers gets four free factor grades. The grades describe the company's data; the model's view of each stock is for subscribers.

The four factor grades (A+ to F)

Value: price against earnings, sales, cash flow and book value.
Growth: sales and earnings growth, and the next-12-month estimate Torvanta calculates from SEC filings.
Profitability: margins and returns on equity and invested capital.
Momentum: the 12-month price trend, distance from highs and recent strength.
Each grade compares a company with the rest of its sector, so a bank is graded against banks and a chipmaker against chipmakers.

Grades are not the model's view

The model combines these and many other signals - news, insider trades, earnings-outlook changes, market conditions - into one score and ranks every covered company.
A company can grade well and rank poorly, or the other way round. The rank, expected return and the reasons are for subscribers.

Where the data comes from

Company financials: the company's own 10-K and 10-Q filings with the SEC.
Prices: end-of-day market data; returns include reinvested dividends.
Estimates and dates: calculated by Torvanta from each company's filing history, not copied from analysts.

Browse free ratings for every covered stock · Highest-rated growth stocks · Undervalued stocks

Frequently asked questions

What does an A grade mean?

An A grade means the company ranks near the top of its sector on that family of measures. It describes the data, not a recommendation.

How often are ratings updated?

Every trading day after the market close.

Why can a stock with poor grades rank well with the model?

The model weighs signals by how well they have worked recently, and some of what it uses - such as news, insider buying or market conditions - is not in the four grades.

See the model's view

Subscribers get the model's rank and expected return for every covered company, the reasoning behind each, and the Torvanta model portfolio's trades each trading day, sized and explained, at three risk levels.

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Torvanta is research only - not investment advice and not a recommendation to buy or sell any security. Grades describe a company's reported data against its sector; they are not the model's view, change as data changes and can be wrong. Financial figures come from the company's SEC filings; returns include reinvested dividends. Past performance does not predict future results.

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