Stock Savvy

Stock Savvy

MorningstarStandard & Poor’s

Value Line

Morningstar

• Objectives:• Know the basic components of the Toolbar• Find and review a company report• Know how to use the glossary

Morningstar• Includes over 2,000 stocks• Generally the largest companies in terms of

market capitalization and sales across more than 130 industries globally

• Also rate stocks that aren’t as well known but are attractive investments

• Rates stocks 1 through 5 stars, with 5 the best and 1 the worst.

• Goal is to answer this difficult question: Is a company worth the price that the market is asking for its shares?

Morningstar

• Key components to their ratings:• Analysts’ estimate of the stock’s fair value• How much uncertainty of their estimate• Current market price • Both quantitative & subjective input• Is calculated daily• No predefined distribution of stars• Let’s search for an analyst report

Morningstar Stock report

• Merck analyst report

Standard & Poor’s NetAdvantage

• Objectives• Find a stock report/company profile• Know the difference between a stock report

and a company profile• Find an issue of S&P Outlook• Use the S&P glossary

S&P Net AdvantageStock reports on over 1100+ companies, analysts’ evaluation, timeliness (updated weekly). More indepth. Electronic reports provides more information: consensus opinion, industry analysis and newsCompany profile financials and projections for 6,000 publicly held companiesSTARS (Stock Appreciation Ranking System)5overperform 1 underperform

S&P NetAdvantage

• Merck S&P Stock Report

• S&P Outlook

Value Line

• Founded in 1931 as Arnold Bernhard & Company, Inc.• Stock traded on NASDAQ: Symbol: V• Analysis of approximately 1700 stocks, 100 industries • This universe comprises 95% of the market

capitalization of all stocks traded in the US markets• Source of historical information • Forecast of stock price performance over the next six

to 12 months

Value Line

• Covers 1700 equities, Standard edition, roster of companies changes

• Projections of key financial measures• Small and Mid-Cap of the Value Line Investment

Survey 1800 stocks contains consensus earnings estimates, if available, but they do not contain analysts commentaries

Timeliness• Rank 1 (Highest): These stocks, as a group, are expected to be the

best performers relative to the Value Line universe during the next six to 12 months (100 stocks).

• Rank 2 (Above Average): These stocks, as a group, are expected to have better-than-average relative price performance (300 stocks).

• Rank 3 (Average): These stocks, as a group, are expected to have relative price performance in line with the Value Line universe (approximately 900 stocks).

• Rank 4 (Below Average): These stocks, as a group, are expected to have below-average relative price performance (approximately 300 stocks).

• Rank 5 (Lowest): These stocks, as a group, are expected to have the poorest relative price performance (100 stocks).

Value Line

• Company Report Merck