Press the drop-down button ( ) to expand the Chart Header and see Power Gauge components for the stock you are charting.
Press ( ) next to any component to expand its factors.
Earnings-related components and factors are described below. Definitions for all model factors are listed in the Chaikin Power Gauge Factor Guide.
Power Gauge data is provided by Portfolio123, sourced from S&P Compustat, and may differ in some cases from Zacks data. Data is updated after each trading day prior to the next market open.
The Earnings Component consists of 5 Earnings-related factors which identify companies with steadily growing Earnings, managing surprises well, which are not overvalued on a projected basis.
|Earnings Growth||Weighted average of 3-5 year EPS growth|
|Earnings Surprise||Weighted average of recent quarterly EPS surprises|
|Earnings Trend||EPS %change, trailing 12 months|
|Projected P/E||Current price / mean analyst EPS estimate, next fiscal year (Relative to Industry)|
|Earnings Consistency||EPS consistency, recent and projected fiscal years.|
Factor scores are computed by evaluating the formula for each stock and ranking them to determine each stock’s position in the Russell 3000 universe or Industry Group. These ranks are displayed as a ‘slider’ with 5 positions from Very Weak to Very Strong:
The Earnings Component value is determined by weighting the five individual Earnings factors (using a proprietary weighting scheme) and combining them into a composite score, which is also displayed as a ‘slider’ with values from Very Weak to Very Strong. The Earnings Component score represents 30% of the overall Power Gauge Rating value.
Estimate Trend Factor
|Estimate Trend||13-week change, mean analyst EPS estimate, next fiscal year|
One might assume that current Consensus Estimate levels would be a good indication of future price activity. In actuality, current Estimates are generally already factored into current prices and are not generally predictive. What we have found to be predictive, however, is the movement of Consensus Estimates, or “Estimate Trend”.
Often, Wall Street analysts covering a company will raise or lower their estimates in coordinated fashion preceding a price move. Our backtesting has found a positive correlation between the 13-week change in the upcoming fiscal year mean estimate and relative price performance 1-6 months in the future.
The Estimate Trend factor looks at this value, ranked across the Russell 3000 universe, and displays it as a ‘slider’ with a value from Very Weak to Very Strong.