Lesson Researching investments

Research - Questrade Trading

Learn more about the Research tools available in the Questrade Trading platform

Questrade Trading also offers many of the same research tools as Edge Web and Desktop. These research tools can be found under the Chart and Key statistics areas.

To enable the TipRanks Smart score, and other tools, please click the Turn on button, then read and accept the disclaimer.

Turn on Tipranks Questrade trading

Once you enable the analysis tools, you’ll be able to see the TipRanks Smart score, as well as the recent Analyst consensus, and Average price target. You can also click the “See full analysis” button above the Smart score visual for more detailed information.

Symbol analysis tipranks questrade trading

After clicking the See full analysis button, you’ll be shown a window with the Smart score shown at the top, and more detailed information about all of the components that make up the score.

Symbol analysis in depth GIF tipranks

In the Full analysis window, you’ll see a snapshot of the security’s overall performance.

This includes the average Analyst consensus, price target, blogger opinions, hedge fund activity, news analysis and more.

For a more detailed analysis, you can also enable Questrade Edge, which has in-depth research tools for all of the categories shown here.

You can learn more about the research tools available in Questrade edge in the sections above.

Learn more about how the Smart score is calculated below.

The Smart Score is a proprietary quantitative stock scoring system created by TipRanks. It rates stocks from one to ten, based on 8 key market factors. The lowest score is a 1 and the highest is 10. The scoring system works as follows:

  • Stocks with a score of 1, 2, or 3 are considered to be Underperforming
  • Stocks with a score of 4, 5, 6, or 7 are considered to be Neutral
  • Stocks with a score of 8, 9, or 10 are considered to be Outperforming

The score is data-driven and does not involve any human intervention. Let’s take a deeper-dive on exactly how TipRanks calculates the Smart Score:

How is the Smart Score calculated?

The 8 market factors that contribute to the rating are: analyst ratings, insider transactions, blogger opinions, investor sentiment, hedge fund activity, news sentiment, technicals, and fundamentals. 

These individual components are explained in more detail below.

Smartscore spoke visual - how is smart score calculated

These eight factors equally contribute to the rating, and each factor makes up 12.5% of the Smart Score.

The Fundamentals, and Technicals are divided into two sub-categories each representing 6.25%

  • Technicals: SMA - 6.25% (simple moving average at 20 and 200 days), and Momentum - 6.25% (12 months change)
  • Fundamentals: Return on equity - 6.25% (trailing 12 months), and Asset growth - 6.25% (trailing 12 months)

If any of the eight factors are not available, they are considered to be contributing a neutral value to the Smart Score.

The Smart Score ranking is also relational. This means that once the score is calculated based on the 8 factors, the stocks are arranged from highest to lowest.

The top ranking ~4% of stocks receive a Smart Score of 10. The next ~7% get a Smart Score of 9 and so on.

As the number of securities analyzed by TipRanks changes (due to new coverage, listings or IPOs) the Smart Score may also change, even if the 8 market factors remain the same.

Market factors contributing to the Smart Score

These are the eight market factors that contribute to the Smart score:

Financial analyst ratings

Analyst consensus is based on sell side analyst ratings issued within the last 3 months.

Corporate insider transactions

Insider Activity provides you with insight into whether corporate insiders are net buyers or sellers of the company’s stock.

Financial blogger opinions

Blogger sentiment is based on blog posts analyzed by TipRanks’ natural language processing technology.

Bloggers consensus is based on tracking and measuring the performance of over 50,000 individuals. Data is based on Tipranks’ three tier  proprietary formula, which ranks them based on the following:

  1. Success Rate - This measures the win-to-loss ratio
    • For example: The number of accurate vs inaccurate picks. 10 losing transactions cannot be offset by one winning transaction with a high profit
  2. Average Return - a bloggers overall performance
  3. Statistical Significance - a measure of the blogger's consistency based on the number of submissions received
    • For example: A blogger with a 1000% average return but with 1 submission would rank very low. A blogger with a 2% average return with many submissions would rank very high.

Individual investor sentiment

Sentiment is based on the percentage of portfolio increase or decrease in the last 7 and 30 days by hundreds of thousands of individual portfolios of TipRanks subscribers.

Hedge fund manager activity

Hedge Fund Activity is an indicator of the net Hedge Fund purchases or sales in the previous quarter.

News sentiment

Sentiment is based on the last seven days of news stories analyzed by TipRanks’ natural language processing technology, and can show you the trends in current news sentiment for this specific ticker.

Fundamentals

The fundamentals measurement is split into 2 categories: Return on Equity, and Asset growth. Both of these are measured for the last 12 months trailing when corporate earnings information is publicly available.

Technicals

The technicals measurement is also split into 2 categories: SMA (Simple moving average) over 20 and 200 days, and the Momentum (12 months change).

Six of the eight market factors incorporated into the Smart score are unique to TipRanks, only the technicals and fundamentals are not.

Note: The information in this blog is for educational purposes only and should not be used or construed as financial or investment advice by any individual. Information obtained from third parties is believed to be reliable, but no representations or warranty, expressed or implied, is made by Questrade, Inc., its affiliates or any other person to its accuracy.

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