At theScreener.com we have identified a few stock analysis techniques that are very popular among investors. What we do is bring together the most important elements of these techniques in an attempt to "set all compasses in the same direction".

Some look to the analysts: Analysts Earnings Revisions

Everyone has heard of a stock moving positively or negatively on "analysts revisions" or on the fact that it "beat" or "came in under" analysts' earnings expectations.

Some look forward: Fundamental Analysis

Fundamental analysis is widely used by analysts and investors who attempt to establish whether a stock's price is undervalued or overvalued relative to its anticipated growth.

Some look back: Technical Analysis

Technical analysis is widely used by analysts and investors who attempt to anticipate a stock's movement based on the movements it has made in the past.

Some do all three: theScreener.com

Analysts Earnings Revisions:
What theScreener.com does is takes the analysts' consensus view of a stock. We don't do this from a buy, sell or hold perspective, but from a perspective that is by far more objective: numeric revisions of earnings estimates.

Because they do not wish to jeopardize their working relationships with the companies they analyze, analysts can be somewhat reluctant to give Sell and Hold recommendations. However, where they cannot express themselves freely with words, they do let their numbers do the talking. This is why when we look to what the analysts are "saying" about a stock, we only take into consideration what they are saying with their numbers. Our Earnings Revision Trend takes a seven-week snapshot of how a minimum of three analysts revised their earnings estimates.

By standardizing the powerful element of what the analysts are saying about a stock, we help our investors to make sure their "analyst" compasses are all pointing in the same direction.

Fundamental Analysis:
When it comes time to find a stock's value we look to the widely-used Growth to Price Earnings (G/PE) ratio to help determine whether it is undervalued (cheap), fairly valued (correctly priced) or overvalued (expensive) relative to its anticipated growth.

By establishing a common ground for fundamental analysis within our product, from this perspective we are making sure that our investors' "fundamental" compasses are all pointing in the same direction.

Technical Analysis:
At theScreener.com we understand the popularity and value of technical analysis. We have built this into our system with our Medium Term Technical Trend. Our MT Tech Trend can be thought of as a medium term moving average. If a stock's price is lower than this average (expressed as a line, and found in the Chart View) it is considered to be in a negative technical trend. On the contrary, as long as a stock's price is higher than this line (and its Tech Reverse Point) it is considered to be positive.

By including the important technical aspect of analysis in our product we make sure that our investors' "technical" compasses are all pointing the same direction.

theScreener.com's Star Rating System: Interest
theScreener.com's star rating system is designed to enable you to identify high-quality stocks quickly and easily. The system assigns one star for a positive Earnings Revision Trend, one star for a positive Medium Term Technical Trend, and one or two stars for the Valuation Rating, depending on its value.

Therefore, a stock that has four stars must have a positive Earnings Revision Trend, positive Medium Term Technical Trend, and a Valuation Rating that is either "moderately" or "strongly" undervalued. By simply looking at the stars a great deal of the analysis is already done. The detail work can be carried out quickly by reading the stock's Checklist View (and Analysis View, if necessary) and reviewing its near-term evolution by clicking on the Historical View.

All compasses pointing north
By taking the most widely used methods for stock analysis and simplifying them with our star rating system, we help you to share the same compass with as many investors as possible. Ultimately this should increase your chances of using the same methods as everyone else, and in doing so, help you to make better trades.