NEW YORK, Jan. 14, 2014 /PRNewswire/ -- Since the inception of S&P Capital IQ's STARS* equity research ranking system on January 1, 1987, the company's 5-STARS (Strong Buy) ranked stocks have increased 3,056%, versus 663% for the S&P 500 Index, through December 31, 2013. On a total return basis with data collected since December 31, 1992, 5-STARS have risen 1,387% versus 542% for the S&P 500.
Including the recent results for 2013 it is the 20th time in the 27-year history of STARS that S&P Capital IQ equity research analysts have had their Strong Buys outperform the widely followed S&P 500 benchmark. In 2013, Strong Buys advanced 40.38% versus 29.60% for the S&P 500, an outperformance of 1,078 basis points. On a total return basis including dividends, 5-STARS returned 42.76% versus 32.39%.
Since STARS inception, the various stock rankings have performed in line with their forecasted purpose, as 4-STARS (Buy) have increased 1,551%, 3-STARS (Hold) have increased 1,121%, 2-STARS (Sell) have increased 475%, and 1-STARS (Strong Sell) have increased 53%, all against the benchmark S&P 500's increase of 663%.
"S&P Capital IQ equity analysts have once again been able to filter out stocks which have outperformed by focusing on variables such as revenue growth and margin improvement," said Stephen Biggar, Global Director of Equity Research at S&P Capital IQ. "Correlations among S&P 500 constituents as measured by the CBOE's Implied Correlation Index dropped significantly from early in 2013, allowing analysts to showcase their stock picking skills. Our growth-at-a-reasonable-price methodology, combined with a focus on business health, has also helped our analysts favor companies with lower risk relative to the broader market."
S&P Capital IQ Equity Research provides independent analysis on over 1,100 U.S. stocks. S&P Capital IQ's qualitative equity stock reports provide key statistics, proprietary measures and analysis, as well as consensus data.
*STock Appreciation Ranking System
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S&P Capital IQ, a part of McGraw Hill Financial (NYSE: MHFI), is a leading provider of multi-asset class and real time data, research and analytics to institutional investors, investment and commercial banks, investment advisors and wealth managers, corporations and universities around the world. Evaluated pricing is prepared by Standard & Poor's Securities Evaluations, Inc., a part of S&P Capital IQ and a registered investment adviser with the U.S. Securities and Exchange Commission. S&P Capital IQ provides a broad suite of capabilities designed to help track performance, generate alpha, identify new trading and investment ideas, and perform risk analysis and mitigation strategies. Through leading desktop solutions such as Capital IQ, Global Credit Portal and MarketScope Advisor desktops; enterprise solutions such as S&P Valuations; and research offerings, including Leveraged Commentary & Data, Global Markets Intelligence, and company and fund research, S&P Capital IQ sharpens financial intelligence into the wisdom today's investors need. For more information, visit www.spcapitaliq.com.
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SOURCE S&P Capital IQ