DEFINITION of 'Timeliness'

A proprietary rating system used to rate stocks while taking into account earnings changes and price performance in order to assess potential price performance over the short term. Common market factors are not measured in this stock rating system. The rating of "A" is the highest rating and a rating of "E" is the lowest. These ratings are updated daily. Although "A" and "B" stocks may yield higher returns compared to "C" and "D" stocks, these higher rated stocks tend to be much more volatile.

BREAKING DOWN 'Timeliness'

In comparison, the value line uses a slightly different rating method. A rating of one is the highest rating while a rating of five is the lowest rating. The ratings they collect is based on the likely price performance of a stock over a six to 12-month period.

When using this method it important to consider the volatility of your investment. You should also understand the general market conditions since this rating does not acknowledge it and the best stocks could be affected by adverse market periods.

  1. Volatility

    1. A statistical measure of the dispersion of returns for a given ...
  2. Rating

    1. An evaluation of a corporate or municipal bond's relative ...
  3. Investment

    An asset or item that is purchased with the hope that it will ...
  4. Risk

    The chance that an investment's actual return will be different ...
  5. Earnings

    The amount of profit that a company produces during a specific ...
  6. Value Line Index

    A stock index containing approximately 1,675 companies from the ...
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