MicroMonitor

What are earnings momentum?

 Earnings momentum =

• 20% x 1 month revision +
• 30% x 3 month revision +
• 50% x 6 month revision

1 month revision is given 20% weighting because stock analysts are unlikely to change their recommendations within 1 month. 3 months revisions are given 30% weighting because analysts are more likely to change their stock recommendations in the three months than one month. 6 month revisions are given 50% weighting because analysts are more likely to change their recommendation in 6 months than one or three months.

Using percentile, stocks within the local universe are ranked and scale projected onto the scale of 0 to 100.

Fashion report

Data such as EPS, DPS, CPS, EBIT, sales, PBT, PE and analysts' recommendations are collected and provided by IBES. Stocks are grouped based on their recommendations such as strong buy, buy, or strong sell. The highest ranked stock is one with strong buy recommendations from the most number of analysts. This is represented in a chart.

One point to note is that analysts usually change their recommendations slowly but they change their EPS forecasts quickly.

Behavioral Finance

The database work is much about behavioral finance which is a branch of finance concerning people's behaviors when investing or engaging in financial activities. An example of this is the importance the database tool put on analysts' forecasts and how they react to news and their behaviors in changing their recommendations.

Indices

Indices used in this database are local indices.