How Reliable is Alpha Ratings?

The Alpha Rating ranks and rates stocks based on their historic performance by evaluating and comparing investments based on their Alpha. In finance, the term “alpha” refers to a measure of investment performance that indicates the excess return of an investment compared to a benchmark. Consistency in outperforming benchmark is a good metric for stock selection for long-term investors.

Historical performance of US Alpha Ratings is shown below:

From the chart you can see how Alpha Ratings has outperformed index buy and hold investing over long-term. The longest streak of profit making months is seven while that of loss making months is four. The most profitable month delivered 17% while the most loss making month delivered -18%. There were six profitable years and one loss making year.

Historic performance shows that Alpha Ratings is reliable at identifying stocks that are consistent at outperforming the benchmark index in the long-term.

Useful Links:
Alpha Ratings US
How to Use Alpha Ratings (YouTube)