Brian's Dunks

Stock List

This section of FS Insight has been deprecated and is now part of the archive. It is no longer actively maintained or updated. For more information contact us.

Frequently asked questions

What is the Analyst Sentiment Measure (ASM)?

Our ASM indicator is a proprietary measure of relative earnings estimate revisions at the sector/sub-industry levels and is the most important input for the majority of our investment recommendations. It is both a momentum and contrarian tool depending on its level relative to the previous two decades. We will typically conclude that the investment trend for a recommendation is consistent with the slope of this historical time series, and that the maximum risk/reward opportunity occurs near the inflection point of an extreme reading.

Our analysis has found that the critical strategic factor to determine the dominant relative performance trend for most S&P GICS groupings is the aggregation of analyst behavior at the company level regarding their forward profit expectations. When the ASM is combined with extreme readings of several other 8-panel inputs, our research shows that the ASM has been a powerful leading relative performance indicator (“clustering” – see pages 8 and 9 for example).

What is Valuation?

We view valuation as a measure of potential risk, and its importance comes from its current reading compared with levels at major historical relative performance inflections

What is the 8 Panel Analysis?

Our proprietary 8-panel analysis is a key piece of information for new idea generation in our investment recommendation process. It provides a subjective, but disciplined, assessment of reward and risk by examining earnings estimate revisions, valuation, and price reversion for sectors (GICS L-1), industries (GICS L-3), and sub-industries (GICS L-4) versus the market or its peers‡ to predict 9-18 month relative performance.