Understanding Stock Score - QVT Scores, Brokerage Ratings and Price Targets

Score of a stock is calculated based on Quality, Valuation and Technicals score of the stock. Quality, Valuation and Technicals are the different parameters set using the fundamentals, technicals and historical performance of each individual stocks. Generally, the scores are assigned between 0-10 where a score of over 5 is considered good and a score under 3 is considered bad. A score between 3-5 is considered average/neutral.

1. Quality: Quality Score indicates good and consistent financial performance: stable revenues, profits, cash flows and low debt.
2. Valuation: A High Valuation Score indicates the stock is competitively priced at current P/E, P/BV and share price.
3. Technicals: A High Momentum Score indicates the stock is seeing buyer demand, and is bullish across its technicals compared to the rest of the stock universe. The score for each element of the QVT score indicates the following

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QVT stock score gives you three scores on every stock in the stock market.

A High Quality Score (above 5.5) indicates good and consistent financial performance: stable revenues, profits, cash flows and low debt

A High Valuation Score (above 5.0) indicates the stock is competitively priced at current P/E, P/BV and share price.

A High Technical Score (above 6.0) indicates the stock is seeing buyer demand, and is bullish across its technicals compared to the rest of the stock universe.

Example

1. The Quality score of Coal India is 6.8 out of 100, which means the company is doing well financially.
2. The Valuation score is 6.9 out of 100, which means the stock is available at a fair valuation.
3. The Technical score is 4.9 out of 100. It means the price strength is moderate or neutral.

Overall, Coal India is a stock with good fundamentals and valuation but with moderate technicals. Based on these parameters one can decide whether to invest in Coal India or not.

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Brokerage Price Targets

Brokerage price targets are estimates made by financial analysts of a stock's future price performance. These targets are based on a variety of factors, including the company's financial health, industry trends, and market conditions. The purpose of a price target is to provide investors with an idea of the stock's potential value, which they can use to make informed investment decisions. It is important to note that price targets are not guarantees, and actual stock prices may vary significantly from these estimates. As such, investors should use price targets as one of many tools when evaluating potential investments.

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Brokerage Recommendations

A brokerage buy or sell recommendation is a suggestion made by financial analysts on whether investors should buy, sell, or hold a particular stock. These recommendations are based on a variety of factors, including the company's financial health, industry trends, and market conditions. Buy recommendations indicate that analysts believe the stock is undervalued and has the potential to increase in price, while sell recommendations suggest the opposite. Hold recommendations imply that the stock is expected to perform in line with the market and that investors should not make significant changes to their positions.

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Example - INFOSYS

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Using above information, users can make informed choices while buying a stock and deciding whether to hold the stock for long-term.

Investors should carefully consider these recommendations, but ultimately should make their own decisions based on their individual financial goals and risk tolerance.