Since January 1, 1987, S&P's Equity Research Services has ranked a universe of common stocks based on a given stock's potential for future performance. Under proprietary STARS (STock Appreciation Ranking System), Standard & Poor's equity analysts rank stocks according to their individual forecast of a stock's future capital appreciation potential versus the expected performance of a relevant benchmark (e.g., a regional index (S&P Asia 50 Index, S&P Europe 350 Index or S&P 500 Index), based on a 12-month time horizon. STARS was designed to meet the needs of investors looking to put their investment decisions in perspective.
S&P's STARS rank over 1,500 U.S. and 300 non-U.S. stocks. For detailed information about STARS, read our White Paper here.
STARS Performance
Overall, the analytical rigor of Standard & Poor's Equity Research has produced an outstanding track record. On an annual basis since inception in 1987, Standard & Poor's "Strong Buy" recommendations (represented by 5 STARS) have outperformed the S&P 500 15 times, underperformed three times and tied once. And during that same period, S&P's "buy" stocks (represented by 4 STARS) have appreciated more than tenfold.
For complete information on STARS performance, please see the STARS chart above, or contact us for more information. Please see disclaimers below.
The STARS Ranking System
***** STRONG BUY - Total return is expected to outperform the total return of the S&P 500 Index by a wide margin over the coming 12 months, with shares rising in price on an absolute basis.
**** BUY - Total return is expected to outperform the total return of the S&P 500 Index over the coming 12 months, with shares rising in price on an absolute basis.
*** HOLD - Total return is expected to closely approximate that of the total return of the S&P 500 Index over the coming 12 months, with shares generally rising in price on an absolute basis.
** SELL - Total return is expected to underperform the total return of the S&P 500 Index over the coming 12 months, and share price is not anticipated to show a gain.
* STRONG SELL - Total return is expected to underperform the total return of the S&P 500 Index by a wide margin over the coming 12 months, with shares falling in price on an absolute basis.
Disclaimer
On an annual basis since inception in 1987, Standard & Poor's 5 STARS recommendations outperformed the S&P 500 index 14 times, underperformed three times, and tied once.
It should not be assumed that recommendations made in the future will be profitable or will equal past performance. The above performance calculations for STARS do not take into account reinvestment of dividends, capital gains taxes or brokers' commissions and fees. A complete list of STARS recommendations made in the last year is available from Standard & Poor's on request. STARS are published by Standard & Poor's U.S. Equity Research Group. Standard & Poor's Investment Advisory Services (SPIAS) did not provide this performance data.
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