Stock Selection Models | Price Momentum and Quality Measures

Price Momentum

Price Momentum, introduced in August 1991, is a near-term stock price performance indicator with most performance occurring in the following month to quarter. Price Momentum looks for companies with good twelve-month performance that have been consolidated or corrected in the last quarter or month.

Quality Rating

Ford's Quality Rating, introduced in 1970, is a measure of overall financial strength and earnings stability. The general factors for this risk measure include company size, debt level, earnings history and industry stability. Ford's Quality Rating ranges from A+ to C- (B is considered average).

Share BuyBack/Issuance

Our Share BuyBack/Issuance model was introduced in October 1995. Favorable stock performance from companies repurchasing their shares may be the result of various factors including higher internal return on investment, excess cash flow, and a smaller share base that improves earnings per share.

Earnings Variability

Ford's Earnings Variability is a unique measure of risk that tracks the historical volatility of reported earnings per share. Earnings variability is computed by finding the minimum standard error of annual earnings over the past eight years fitted to an exponential curve. Earnings variability, which is shown as a percentage of normal earnings, is a very useful indicator that can be used to evaluate future earnings and growth estimates.