Timeliness

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.

RELATED TERMS
  1. Stock

    A type of security that signifies ownership in a corporation ...
  2. Volatility

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

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

    An asset or item that is purchased with the hope that it will ...
  5. Earnings

    The amount of profit that a company produces during a specific ...
  6. Risk

    The chance that an investment's actual return will be different ...
Related Articles
  1. Active Trading

    Which Direction Is The Market Heading?

    The easy and underused NYSE Bullish Percent Index provides insight into market conditions.
  2. Active Trading Fundamentals

    Digging Deeper Into Bull And Bear Markets

    Discover why it's important to know the characteristics of the two types of market conditions.
  3. Active Trading

    Timing Trades With The Commodity Channel Index

    We introduce how to use this oscillator, which identifies cyclical trends, for determining buy and sell points.
  4. Savings

    What Your Credit Score Means for Your Love Life

    Wondering if your significant other wants to commit and is reliable? The Fed might have the answer.
  5. Investing

    3 Healthy Financial Habits for 2016

    ”Winning” investors don't just set it and forget it. They consistently take steps to adapt their investment plan in the face of changing markets.
  6. Stock Analysis

    Are U.S. Stocks Still the Place To Be in 2016?

    Understand why U.S. stocks are absolutely the place to be in 2016, even though the year has gotten off to an awful start for the market.
  7. Term

    Understanding Market Price and Its Changes

    An asset’s or service’s market price is the current price at which it can be bought and sold.
  8. Active Trading

    Market Efficiency Basics

    Market efficiency theory states that a stock’s price will fully reflect all available and relevant information at any given time.
  9. Economics

    The History of Stock Exchanges

    Stock exchanges began with countries who sailed east in the 1600s, braving pirates and bad weather to find goods they could trade back home.
  10. Retirement

    5 Reasons Millennials Lead in Saving for Retirement

    Say what you want to about millennials but the one thing they are doing better than any other generation is saving for retirement. Here's why.
RELATED FAQS
  1. What is the best time of the day to trade?

    Unlike traditional investing, trading, or day trading, has a very short-term focus. Analysis may be broken down to days, ... Read Full Answer >>
  2. Where do penny stocks trade?

    Generally, penny stocks are traded through the use of the Over the Counter Bulletin Board (OTCBB) and through pink sheets. ... Read Full Answer >>
  3. Where can I buy penny stocks?

    Some penny stocks, those using the definition of trading for less than $5 per share, are traded on regular exchanges such ... Read Full Answer >>
  4. How does the stock market react to changes in the Federal Funds Rate?

    The stock market reacts to changes in the federal funds rate in various ways depending on where it is in the business cycle. ... Read Full Answer >>
  5. What are the requirements for being a Public Limited Company?

    The requirements for an entity to be considered a public limited company (PLC) include registration requirements, establishing ... Read Full Answer >>
  6. How do I place an order to buy or sell shares?

    It is easy to get started buying and selling stocks, especially with the advancements in online trading since the turn of ... Read Full Answer >>
Hot Definitions
  1. Harry Potter Stock Index

    A collection of stocks from companies related to the "Harry Potter" series franchise. Created by StockPickr, this index seeks ...
  2. Liquidation Margin

    Liquidation margin refers to the value of all of the equity positions in a margin account. If an investor or trader holds ...
  3. Black Swan

    An event or occurrence that deviates beyond what is normally expected of a situation and that would be extremely difficult ...
  4. Inverted Yield Curve

    An interest rate environment in which long-term debt instruments have a lower yield than short-term debt instruments of the ...
  5. Socially Responsible Investment - SRI

    An investment that is considered socially responsible because of the nature of the business the company conducts. Common ...
Trading Center