Stocks within the ISN universe are classified into one of five classifications which we call considerations. There are five recommended considerations.
- Hold – the stock is trading within the fair value range.
- Buy Watch – the stock has become undervalued and we are waiting for a meaningful turn back in the direction of fair value.
- Buy – the stock is undervalued and has made a meaningful turn back to fair value.
- Sell Watch – the stock has become overvalued and we are waiting for a meaningful turn back in the direction of fair value.
- Sell – the stock is overvalued and has made a meaningful turn back to fair value.
You can reach the considerations tables in several ways on the site. This description will describe how to reach the considerations via the Client Service, Stocks menu.
The Stocks menu appears on all pages under the ‘Client Service’ menu. The picture below shows the ‘Stock Reports’ menu item circled in yellow highlighter from the Welcome page, under the ‘Client Service’ menu item.
When the ‘Stock Report’ item is selected a menu will appear.
Options will appear showing reports that are available. The first report in this example is a Considerations report for the USA stocks. There are 1,500 stocks covered in the report. A sample page for Buy Considerations is displayed below. The Considerations report has tables for the following consideration categories:
- Buy Watch
- Sell Watch
Hold considerations are not shown in a table within this report.
Each column is identified across the top of the report. There are nine data items.
Column 1: displays the ticker used for identification.
Column 2: shows the consideration classification, B = Buy, BW = Buy Watch, SW = Sell Watch and S = Sell (There is no Hold table in this report.)
Column 3: is the company common name
Column 4: identifies the sector as assigned by S&P Global.
Column 5: identifies the industry group as assigned by S&P Global
Column 6: displays the current dividend yield
Column 7: identifies the respective index (S&P500, S&P400, S&P600) as assigned by S&P Global
Column 8: shows the current Fv rating in terms of a percent of Fv where 100% Fv equals fair value. Each cell is color coded. No color or a clear block indicates that the current price is within the Fv range. Green indicates the current price is considered undervalued. Yellow indicates the current price is in the cautionary range toward over valuation. Red indicates the current price is considered overvalued.
Column 9: displays the CMA category of the individual stock. CMA represents the historical movement of the stock price. Core indicates a pattern that is more consistent than the market overall. Market indicates a pattern that is representative of the majority of the stocks. Aspirational indicates a pricing history that is not as stable as the overall market. The CMA rating does not represent an indication of upward or downward price direction in the future but does examine the relationship of the individual stock’s pricing pattern and the market overall.
The report is generated at the beginning of each week and published under the Stocks menu item and titled Considerations USA. There is a table for each of the Buy, Buy Watch, Sell Watch and Sell classifications. Each table is sorted by Sector and then Industry Group then by Fv percent. The Buy and Buy Watch tables have the most undervalued stocks listed first. The Sell and Sell Watch have the most overvalued stocks listed first.
The weekly status classification can be found in the Considerations Report. Any time a stock’s status changes it is immediately published in the USA Stock Consideration Change Report. The change report is a daily report. Each stock that has experienced a change in status is identified in the table in terms of where it now resides and which status it originated.
Please refer to the USA Stock Consideration Change Report for details on that report.