Alpha Rating is designed to identify stocks that outperform the benchmark index. It can not predict future performance of a stock.
Alpha ratings is designed for long-term investors who believe that the buy-and-hold will deliver returns in the long-term. By helping identify stocks that are relative outperformers of the index, Alpha Ratings attempts to make long term investing less risky.
Here’s a look at long-term performance summary of Alpha Ratings from 1-Jan-2016 to 16-Jun-2023, a period of 7 years and 5 months:
Alpha Ratings delivered 14.5% annualised in comparison to 11.1% of the benchmark while taking peak risk (Max. drawdown or fall from peak to trough) of -35.4% in comparison to -33.92% of S&P. I.e: Alpha Ratings delivered significantly better returns while taking less risk than the benchmark index. This is testimony that Alpha Ratings makes it safer to select stocks for buy-and-hold investing.