VectorVest is a stock analysis and portfolio firm which analyzes more than 23000 stocks. VectorVest also ranks and graphs the stocks on the basis of their performance. VectorVest also provides its users with suggestion on different stocks on a daily basis. VectorVest analyzes and measures over 23000 stocks for their two key values. First key value refers to the current worth of the stock; the second value is referred to as Relative Value (RV) which represents the future earning potential of the stock in other words the future appreciation potential of the stock.
VectorVest calculates three key values which help in analyzing a stock’s performance. The key values are a) Relative Value (RV) b) Relative Safety (RS) and c) Relative Timing (RT).
a) Relative Value: The relative Value as mentioned above is a value which reflects the growth potential of a stock. This reflects the potential of price of the stock to increase. RV generally falls between 0 – 2. The analysis can be done by carefully examining the RV of a stock. A stock which has an RV above one is considered as safe stock to invest and reflects a potentiality for growth in future.
b) Relative Safety: Relative safety is a measure which calculates the stability of the price of the stock and the volatility of the price. Similar to the Relative value it comes under the range of 1-2. Stocks rating below 1 are considered as stocks which are not stable and anything above 1 is considered as a stable stock.
c) Relative Timing: The relative timing measures the Movement of the price. If there are chances that the price might go down then the stock will get a rating below 1 and if it is estimated that there won’t be any movement in price then the stock will get a rating which is around 1. If the stock showcases growth in its prices then the stock are given a Relative Timing rate of more than 1.50.
VectorVest calculates the values of all the 23000 shares on a daily basis and guidance is provided on the basis of these measures. Investors can also view these ratings with a minimum number of clicks.