IBD stock valuation method (IBD's Stock Checkup)

Discussion in 'Educational Resources' started by maos, Jan 14, 2006.

  1. maos


    I swing trade on a short term basis (trades lasting for up to three weeks) and heavily rely on fundamental trade confirmation (after my system signals a long trade, I take it only if the fundamentals are good).

    Since I enter on pullbacks I look for companies with good earnings, sales, growth, low debt, good money flow... and all that in some composite rating. IBD's analysis seems perfect for that.

    until now, I used MSN Money's Stock Research Wizard for that, but last week there was a free trial week at investors.com and I tried their Stock Checkup. I noticed that there can be quite a difference of opinion(between MSN's and IBD's staff) which stock has good fundamentals and receives their high composite rating - It is not rare for a stock to have a 99 (A+) rating at IBD and at a same time very low StockScouter rating at MSN Money.

    Why is that ? Who should I go with ?
  2. tj1320


    I would also like an answer to this. Thread resurrected.
  3. Beware........ IBD rates its stocks on performance.... hence the highest rated ones are the ones on stock steroids.... only one problem with that: any news that comes out..... or earnings that just "meet expectations" ... stocks fall hard. When i was trading stocks... i found it safer to get into stocks rated 80-85 .... that were beginning to go up, instead of buying stocks rated 99.

    I once saw a stock that i had just sold a week prior.. it was rated like 95 or 98... plunge $27 in one day because of news.... lost like 65% of its value. Scared the crap out of me.... and after that i started to look at IBD with a more critical eye.

    Having said that.... MSN stock scouter is a joke in comparison to IBD.