Cir Yahoo Finance

CI RATING, found on Yahoo Finance and other financial data platforms, represents a consensus equity risk rating compiled by Starmine, a Refinitiv company. It’s designed to provide a quick and easily understandable measure of a company’s relative risk compared to its peers.

The CI RATING uses a scale from 1 to 100, with 1 indicating the highest risk and 100 representing the lowest risk. A higher CI RATING suggests that the company is considered less risky relative to its industry or sector. Conversely, a low CI RATING indicates higher perceived risk.

The rating is derived from a sophisticated quantitative model incorporating a variety of factors. These factors often include, but are not limited to, fundamental data points such as:

• Volatility: Historical price fluctuations serve as an indicator of inherent risk.
• Momentum: Recent price trends can suggest sustained performance or potential instability.
• Quality: Metrics like profitability, earnings consistency, and balance sheet strength contribute to the assessment of a company’s financial health.
• Value: Comparison of market price to intrinsic value estimates can highlight potential overvaluation or undervaluation risks.
• Growth: Measures of revenue and earnings growth prospects provide insights into the company’s future potential and associated uncertainties.
• Analyst Revisions: Trends in earnings estimates from Wall Street analysts reflect evolving expectations and potential changes in sentiment.

The weight assigned to each factor within the model is proprietary to Starmine and aims to optimize predictive accuracy. The CI RATING isn’t intended as a buy/sell recommendation. Rather, it’s a supplementary tool to aid investors in their due diligence process. It provides a quick snapshot of relative risk which can then be explored further using more detailed financial analysis.

Investors often use the CI RATING to quickly compare the risk profiles of companies within the same industry or sector. For example, if an investor is considering investing in two technology companies, they might use the CI RATING to assess which company is considered less risky based on the factors considered in the model.

Important Considerations:

• Not a Guarantee: The CI RATING is a statistical measure based on historical data and analyst expectations. It cannot predict future performance with certainty. Market conditions and unforeseen events can always impact a company’s stock price.
• Relative, Not Absolute: The rating represents relative risk within a peer group. A high CI RATING doesn’t necessarily mean a company is risk-free; it simply means it’s considered less risky than others in its category.
• Model Limitations: The model relies on publicly available data and analyst opinions, which may be subject to biases or inaccuracies.
• Dynamic: The CI RATING can change frequently as new data becomes available and analyst opinions evolve.

In conclusion, the CI RATING on Yahoo Finance provides a convenient way to gauge the relative risk of a stock. However, it should be used in conjunction with other research and analysis to make informed investment decisions.