NEW YORK (TheStreet) -- The big-three tech-related names outran their 12-month projected gains in strong Black Friday trading, and two of the three were downgraded this morning to hold from buy according to www.ValuEngine.com.
The ValuEngine valuation model calculates a stock's fair value, the price at which a stock should trade at based on its fundamental economic data as if the market were completely rational and efficient. This calculation considers many time-sensitive variables, such as a stock's EPS growth, analyst estimates and consensus, and the interest rate environment. If any of the variables change, fair value changes overnight.
The ValuEngine forecast model, which determines a stock's rating, predicts what a stock's price will be at a specified future time period given current market conditions. The forecast model builds upon the output of the stock valuation model and combines this data with econometric and simulation techniques to output target prices for one, three, and six-month and one, two, and three-year time horizons.
The forecast model uses distinct algorithms for each of the six forecast time horizons for every industry. It considers short-term price reversals, intermediate-term momentum continuation, and long-term price reversals. As with our stock valuation model, parameters are updated overnight. The one-year price target is used to set the stock ratings.To have a buy rating according to ValuEngine a stock must have a projected 12-month gain of 5% to 12%. A stock projected to gain 12% or more over the next 12 months is rated a strong buy. A hold rating is a projected loss or gain between negative 5% and 5%. A sell rating is a projected loss of 5% to 12%, and a strong sell is a projected loss of 12% or more.
Select the service that is right for you!COMPARE ALL SERVICES
Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.
- $2.5+ million portfolio
- Large-cap and dividend focus
- Intraday trade alerts from Cramer
- Weekly roundups
Access the tool that DOMINATES the Russell 2000 and the S&P 500.
- Buy, hold, or sell recommendations for over 4,300 stocks
- Unlimited research reports on your favorite stocks
- A custom stock screener
- Upgrade/downgrade alerts
Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.
- Diversified model portfolio of dividend stocks
- Alerts when market news affect the portfolio
- Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.
- Real Money + Doug Kass + 15 more Wall Street Pros
- Intraday commentary & news
- Ultra-actionable trading ideas
Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.
- 100+ monthly options trading ideas
- Actionable options commentary & news
- Real-time trading community
- Options TV