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Evaluation FAQs

Evaluation Related

The MarketSmith India Evaluation gives you an unbiased instant assessment of more than 3,900 stocks. Quickly evaluate a stock's rank with our Master Score, a summary proprietary rating, which is based on the EPS, Price Strength, Buyer Demand, and Group Rank ratings.
The Evaluation view is composed of a stock chart and the stock-specific data in the Details Tab. This view efficiently combines the key stock information you need to validate your decision to buy or sell or to commit to further research.
The Chart Overview support content will provide you with an orientation of the data items available on the chart and how they may be used to quickly evaluate a stock.
The Details tab breaks down the data grid so that you can better understand the comprehensive fundamental and technical stock information available.
The Related tab gives the list of top stocks in the Same Industry Group by Master Score and by Relative Strength
The CAN SLIM® Checklist provides a list of CAN SLIM® parameters along with ratings for a specific stock and its grade in terms of Pass or Fail; the higher number of Pass grade, the better the stock quality.

Great earnings growth is what separates the best stocks from crowd. But it is not enough to just have one or two periods of solid growth. A standout stock needs both a sound growth record in recent years, and a strong current earnings record in the last several periods. As a shortcut for identifying such stocks, the MarketSmith developed its Earnings per Share (EPS) Rating. Indian stocks are ranked on a 1-99 scale with 99 being the best. The MarketSmith India suggests focusing your efforts on stocks with an EPS Rating of at least 80.

Human nature being what it is, most people invest backwards. They want to buy what is the down the most and sell what is up. The best stocks are superior price movers even before their big price moves. You should look for stocks with price leadership. The MarketSmith Relative Strength (RS) rating shows you which stocks are the best price performers by measuring the stock's performance over the previous 12 months. That performance is then compared with the performance of all other publicly traded companies in India on 1-99 scale, with 99 being the best. MarketSmith India suggests focusing your efforts on stocks with an RS Rating of 80 or more.

Professional investors wield a huge amount of influence over stock's price. Thus, it is essential that you buy the better stocks that professionals are buying and you may sell or avoid the ones that they may be selling heavily. A quick way to keep a track of the end results of professional trading is the MarketSmith Accumulation/Distribution Rating, which is based on daily price and volume changes. It tells you, whether your stock is under accumulation (professional buying) or distribution (professional selling). Stocks are rated on an A-E scale, with A being the best. Generally, you should confine your purchases to C or better.

The majority of leading stocks are usually in leading industries. MarketSmith India studies show that roughly half of stock's move is driven by the strength of its respective group. MarketSmith India divides stock into 197 industry groups. It then ranks them on six-month price performance, with the number 1 group being the best performer. Concentrate your research on stocks in the top 40 groups.

The founder of MarketSmith, William J. O'Neil, is one of the pioneers of technical stock analysis. In the studies conducted to identify of what works in the stock market are key patterns on stock charts that many of the biggest winners formed before they went on to huge gains. MarketSmith India's Pattern Recognition feature helps you spot these patterns.
The Pattern Recognition feature includes the following elements:
Chart Pattern: The solid dark green underscore identifies the pattern.
Pivot Line: The dashed dark green line represents the pivot line. When a stock passes the pivot line, it is a sign of technical strength. This is an ideal entry point to buy a stock.
Tight Area: Aqua blue highlights represent Tight Areas, which are identified when a stock closes within a 1.5% price range for at least three consecutive weeks. Tight Areas can be a sign of strength and serve as alternate entry points.

CAN SLIM® is a registered trademark of O'Neil Capital Management Inc. All rights are reserved.