This figure measures the performance of a stock relative to its national index (compared to four weeks ago).

For example, a grade of 2 for a given stock would mean that this stock performed 2% better than its national index. On the contrary, a grade of -3 would indicate a performance of 3% under the index. We have chosen not to show the absolute performance, since the index remains the valid benchmark. For a given stock, figures that show an absolute gain of 2% in a market that also gained 2% do not represent any remarkable information. However, a stock that consistently beats its national index is clearly one sought after by investors. A chronic under-performance, of course, would indicate serious problems.

In fact, we use 4 week Relative Performance compared to Earnings Revision Trend. A positive Earnings Revision Trend for a stock that does not show a positive 4 week Relative Performance rating should force the investor to question the pertinence of this revision. In the other direction, a stock with a negative Earnings Rev Trend that stills beats its index (4wk Rel Perf > 0) means that something special is happening with this stock, since investors are still buying it.