Detailed Definition§
The Value Line Investment Survey is a well-known investment advisory service that grades and ranks hundreds of stocks based on their “timeliness” and safety. “Timeliness” refers to the expected performance of a stock relative to the overall market over the next 12 months. Safety grades indicate the financial strength of the company. These rankings are established using a sophisticated computerized model that takes into consideration various factors including a company’s earnings momentum, price momentum, and other key financial metrics. Through this methodology, Value Line aims to project which stocks will have the best or worst relative price performance.
Examples§
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Stock A
- Timeliness Rank: 1 (Highest possible rank, indicating strong expected performance)
- Safety Rank: 1 (Highest level of financial safety)
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Stock B
- Timeliness Rank: 5 (Lowest possible rank, indicating poor expected performance)
- Safety Rank: 3 (Moderate financial safety)
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Stock C
- Timeliness Rank: 3 (Average expected performance)
- Safety Rank: 2 (Above-average financial safety)
Frequently Asked Questions§
What factors does Value Line consider when ranking timeliness and safety?§
Value Line evaluates multiple factors including earnings momentum, price momentum, financial strength, volatility, and other key financial ratios.
How often are the rankings updated?§
Value Line typically updates their rankings on a weekly basis to reflect the latest financial data and market conditions.
Is Value Line Investment Survey suitable for long-term investors?§
While the primary focus is on timeliness over the next 12 months, Value Line’s comprehensive analysis also provides valuable insights for long-term investors regarding a company’s financial health and growth potential.
Can beginners use the Value Line Investment Survey?§
Yes, the straightforward ranking system can be particularly useful for beginner investors, providing clear guidance on which stocks are expected to perform well or poorly in the near future.
How reliable are these projections?§
While no projection can be guaranteed, Value Line has a long-standing reputation for providing reliable and well-researched stock analysis, utilizing a robust quantitative model.
Related Terms§
Earnings Momentum: The rate of acceleration or deceleration in the recent performance of a company’s earnings.
Financial Strength: A company’s overall financial health, typically assessed through balance sheet metrics, profitability ratios, and cash flow analysis.
Price Momentum: The overall trend in stock price movements over a specified period of time, indicating the speed at which the price is moving up or down.
Online References§
Suggested Books for Further Studies§
- “The Value Line Guide to Investing” by Value Line
- “Value Line Investment Survey: Investors’ Collection” by Value Line
- “The Intelligent Investor: The Definitive Book on Value Investing” by Benjamin Graham
- “Security Analysis” by Benjamin Graham and David Dodd
Fundamentals of Value Line Investment Survey: Investment Basics Quiz§
Thank you for delving into the comprehensive world of the Value Line Investment Survey and testing your knowledge with our expertly crafted quiz. Keep excelling in your investment endeavors!
