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FAQ Answers: SmartLists
 

These are answers to questions about the Sabrient SmartLists and SmartStock Reports.

Can you explain your scoring process?  

Sabrient scores are relative rankings of a stock against all stocks in a specified universe (e.g., within a specific market cap segment or investing style). Sabrient scores represent a unique blend of backtested fundamental and technical data which measures various aspects of a company against all others in the American equities markets. Score values range from 0 to 99, with 99 being top ranking and 0 being the bottom ranking. Learn more about Sabrient scores. 

Is a score and a ranking the same?  

Yes, the terms are interchangeable. 

What is the Composite Score?  

The Sabrient Composite Score is our final measure of a stock's overall investment potential and is an average of the stock's value, growth, momentum, balance sheet, technical, and earnings profiles. Learn more about Sabrient scores.  

Which of these Sabrient scores is the most important: Value, Growth, Momentum, or Composite?  

It depends on your investment goals. A risk-averse, longer-term investor might favor stocks with a high Value score which reflects earnings strength at a reasonable valuation. Those who prefer stocks with a potential for rapid price gains fueled by rapid earnings growth (with the attendant greater risk) might lean toward stocks with high Growth scores. Short-term investors who are less averse to risk and want relatively rapid price gains might choose stocks with high Momentum scores. The Sabrient Composite Score, which measures overall investment potential, can be considered along with the value, growth or momentum score. Learn more about Sabrient scores.  

Are there scores in the Sabrient process besides the ones I see on the SmartStock and SmartList reports?  

Yes. Our proprietary selection and scoring model includes more than 90 predictive and descriptive measures of investment potential, distilled from fundamental company data. The seven scores shown on the SmartStock Report are composites of these supporting subscores, along with measures of external confirmation.  

What do you mean by ‘external confirmation’?  

We corroborate the results of our quantitative models with independently proven measures of risk/reward, technical strength, timing, and overall safety. As a result, the stocks that boast the highest Sabrient ranks have also passed muster with regards to the broader market consensus. Those issues with poor showings for our external confirmation measures are pushed lower in their final rankings.  

What’s the difference between the Momentum Score and the Timeliness Score?  

The Sabrient Momentum Score considers buy-side volume and price action in conjunction with earnings strength while the Timeliness Score is a purely technical measure that also reflects group strength.