ReturnX sources analyst earnings and dividend estimates for stocks from Bloomberg and calculates a rate of return for each stock implied by each estimate and the current stock price. Since there are usually several analysts covering a stock, ReturnXs output for each stock is a range of returns based on each analysts estimate for the stock. Therefore each return is based on the estimate of a professional analyst covering the stock and whose estimate was submitted to Bloomberg. The range of returns for each stock represent all the analyst estimates for the stock and therefore a range of views on the stock, from the most conservative view to the most optimistic.
How do you benefit from this? 1. ReturnX converts analyst estimates into actual return percentages which tell you how much you can make in percentage terms, per year, for the next three years, for each estimate, should the estimate prove to be correct 2. the analyst estimates used are broker sell-side estimates sourced from Bloomberg, so each return for each stock is based on the estimate of a top professional analyst who follows that stock and estimates the stocks earnings and dividends for the next three years, and 3. since no analyst is consistently correct, the returns together present an overview of all analysts views of the stock, from the most pessimistic to the most optimistic, expressed in percentage terms.
NOTE: Individual analysts and their stock estimates are not identified. The value of the output lies in the return percentage number, as well as the range. Estimates are an important but not the only input into the calculations. Each return is calculated by ReturnX for illustrative purposes only. Results do not, and should not be assumed, construed or otherwise interpreted, to represent financial advice, a financial service of any nature, or a solicitation to trade in stocks, or any other asset(s), financial or otherwise. Refer to the Terms and Conditions and Privacy Policy for full disclosure and more information.