Methodology

How past ratings compared with the market.

Every day after the US close we save what WaZii showed users about every stock it covers: the price, our fair value estimate and the rating (Attractive, Neutral or Unattractive). Then we record how the price moved next against the S&P 500 (SPY). This is a record of the past. It says nothing about future returns.

Recorded figures

Price change after each rating, shown with SPY over the same dates. One observation per stock per month.

How we measure

  1. Source: the ratings users actually saw, saved once a day after the US close. Past days are never edited.
  2. Sampling: the first snapshot of each stock in each calendar month. Daily snapshots of the same stock overlap almost completely, so counting every day would inflate the sample about twenty-fold.
  3. Price change: the stock's price at the end of the window (first snapshot on or after the date, within 7 days) divided by its price on the day of the rating. Price only; dividends are excluded for both the stock and SPY.
  4. Benchmark: SPY over exactly the same dates.
  5. Every completed rating counts. Stocks removed from WaZii stay in the record.
  6. Scope: US-listed stocks. Saudi stocks are tracked but excluded until a Tadawul benchmark is added.

What this does not show

  • Past results do not predict future returns. A few months of data can be luck in either direction.
  • Ratings on the same day are not independent: in a market-wide fall most stocks fall together.
  • The stocks covered are the ones our users chose to analyze, not a random sample of the market.
  • Our rules change over time. Each figure reflects the rules in force on the day of the rating.

For information only. WaZii ratings describe how a stock's price compares with our fair value estimate and its quality checks. They are not a recommendation to buy, sell or hold, do not consider your circumstances and can be wrong.