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Fundamental Insight®

The future of Fundamentals

Discover how simple interpretations of complex financial data, AI-driven trade ideas and beautiful, mobile-ready interfaces can help Shares CFD traders find short-term investment strategies.

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Understanding the TC Quantamental Rating®

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Frequently asked questions

There’s so much fundamental data out there, why pick 5 tests per investing style?

There are so many elements and nuances that go into a company’s business that you can’t know them all, let alone figure out how to weigh them in your stock selection model. Based on widely used fundamentals in the industry and backed by our powerful algorithms, we provide a recipe for success through our investing styles, and a list of ingredients that should be in every dish. The art of cooking is up to you!

What are the Trophies for?

Trophies represent the best choice based on our analytics in a given state of the economic cycle. For example, when the Economy is in the Recovery phase, our analytics suggests that "Energy and Real Estate" outperform other sectors, "Small Cap" stocks outperform "Mid" and "Large Cap" stocks and "Value stocks" are preferred over "Income" and "Growth" stocks.

Why does the order of the Top Value, Top Growth and Top Income stocks change?

Our analysis proves that there are specific investment styles that work better during specific phases of the economic cycle and so our algorithm ranks the investing styles accordingly. Example: During Reflation, Income stocks provide better performance than Value stocks.

How are stocks ranked?

Stocks are ranked based on lowest historical volatility. Our analysis suggests that stocks with the lowest price volatility have performed better than those with higher price volatility over a span of 10 years.

What stocks are considered to be better candidates?

Stocks with scores of 3 out of 5 and above are considered to be better candidates.

What is the minimum growth rate?

Minimum growth rate is the Central Bank's overnight rate or the 3 month T-Bill rate. We are looking for a fixed rate in this case.

Why do I see a message ‘data not available for the test, therefore it is considered as failing the test’?

We show this message when data is missing for any of the tests. For example: A test looking for dividend may show this message when the company may not be paying dividends. In this case the test would fail and a score of zero would be provided for the specific stock.

Why is the universe used instead of peers for relative performance on some of the tests?

Peer comparison is better than universe comparison in most cases as we try to compare stocks within the same core group. A Utility stock will have different performance metrics than a Consumer Discretionary one. However, comparing apples to apples may not always be feasible, especially in cases where we want to take advantage of certain concentration of good test candidates. For example, Utility stocks will tend to be more frequent dividend candidates than Technology stocks. In this case we may want to study more stocks than just the ones with a dividend yield above the average Utility Sector.

What are "peers"?

Peers are defined as companies within the same sector. Example: AAPL’s peers include all of the companies in the Technology sector.

How is the universe defined?

The universe is defined as all of the instruments that we cover for a specific country. Eg. Universe coverage for USA includes all of the instruments that we cover in the United States.

How many stocks does the product cover?

We cover more than 4500 stocks in the United States and more than 2500 stocks in Canada.

What company size should I select?

Our analysis suggests that there are specific companies with a range of market capitalization that are more favorable than others in specific phases of the economic cycle. For example: Large Cap stocks outperform small cap stocks during Stagflation and Overheat phases.

Why does the order of the Top Value, Top Growth and Top Income stocks change?

How are Top stocks ranked?

Top stocks are ranked based on lowest historical volatility. Our analysis suggests that stocks with the lowest price volatility have performed better than those with higher price volatility over a span of 10 years.