The value factor includes screens like LT debt to equity ratio, price to book value, return on equity, price to sales ratio and free cash flow. Technical factors cover price trend, price trend rate of change, relative strength vs. market and volume trend. Growth factors include earnings growth, earnings surprise, earnings trend, projected P/E ratio and earnings consistency. Lastly, the sentiment factor screens for earnings estimate trend, short interest, insider activity, analyst ratings and industry relative strength.
Similarly, CSML tries to reflect the performance of the Nasdaq Chaikin Power US Small Cap Index, which applies a shareholder yield screen and the Chaikin Power Gauge to select components from the Nasdaq US 1500 Index.
“The Chaikin Power Gauge stock rating gives you a directional edge. It uses a proven algorithm that uniquely combines fundamental data with technical factors,” according to Chaikin Analytics. “It distills that complex data into simple ratings — green for bullish, red for bearish — so you can make smarter investment decisions quickly and easily.”
Financial advisors who are interested in learning more about multi-factor investments can register for the Thursday, January 25 webcast here.