model_categorization.txt

RATING DEFINITIONS:
- Buy: buy the stock
- Sell: sell the stock
- Hold: expected to perform at the same pace as comparable companies or in-line with the market
- Underperform: stock is expected to do slightly worse than the overall stock market return
- Outperform: stock is expected to do slightly better than the overall stock market return

- Offshoots of these ratings:
    - Equal Weight: analyst believes the stock price will perform in line or similarly than the benchmark index being used for comparison.
    - Sector Perform: returns expected to be in line with sector average over 12 months
    - Market Perform: expectation for a given stock is that it will provide returns in line with those of the S&P 500 or other leading market averages; a neutral assessment
    - In-line: basically the same as market perform
    - Positive: same as "Buy"/"Outperform"
    - Peer Perform: similar to sector perform; company will perform the same as companies within its sector


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RATING WORDS
Buy
Buy - Conviction-Buy
Buy - Hold
Buy - Overweight
Equal Weight
Equal Weight - Overweight
Equal-Weight
Hold
Hold - Buy
In-Line
In-Line - Buy
Market Perform
Market Perform - Under Perform
Neutral
Neutral - Buy
Neutral - Overweight
Outperform
Outperform - Sector Perform
Overweight
Peer Perform
Perform
Positive
Positive - Buy
Positive - Neutral
Positive - Overweight
Positive - Sector Perform
Sector Perform
Sell
Sell - Overweight
Top Pick - Outperform
Underperform
Underweight


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RATING CATEGORIES:
    SELL
        - Sell
    UNDERPERFORM
        - Market Perform - Under Perform
        - Underperform
        - Underweight
    HOLD
        - Equal Weight
        - Equal Weight - Overweight
        - Equal-Weight
        - Hold
        - In-Line
        - Market Perform
        - Neutral
        - Neutral - Overweight
        - Outperform - Sector Perform
        - Overweight
        - Peer Perform
        - Perform
        - Positive - Neutral
        - Positive - Sector Perform
        - Sector Perform
        - Sell - Overweight
    OUTPERFORM
        - Buy - Conviction-Buy
        - Buy - Hold
        - Buy - Overweight
        - Hold - Buy
        - In-Line - Buy
        - Neutral - Buy
        - Outperform
        - Positive - Buy
        - Positive - Overweight
        - Top Pick - Outperform
    BUY
        - Buy

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NOTES:
    - Fundamental Analysis: using data from publicly available sources (balance sheets, cash flow, income statements) to perform analysis.
    - Financial Ratios to look at in the short-term:
        - Liquidity: current assets / current liabilities
            - good financial health: liquidity ratio > 1
        - ROE: net income / total common equity
            - good financial health: ROE ratio is 20%
        - ROIC: (EBIT - Tax Provision) / total invested capital
            - Good ROIC: greater than 2%
        - Price Earnings to Growth (PEG) ratio: [Forward (P/E)] / expected earnings growth rate
            - ticker.info[pegRatio]
            - pegRatio > 1 --> overvalued; pegRatio < 1 --> undervalued or fairly priced

    - we should go by quarterly reports for most short-term data
    - not all data is readily available from Yahoo Finance API; we'll have to code some of these formulas, but they're just ratios so not too bad
    - KNN Model can have the following:
        - polarities
        - liquidity ratio
        - ROE
        - ROIC
        - PEG Ratio
    - We just have to figure out how to take those properties and classify them

    - Short ratio: the number of shares of a stock that are currently shorted over the stock's average daily trading volume
        - tells investors how many days it would take short sellers to cover their positions if the price of a given stock were to increase
        - if short ratio is increasing, then investor sentiment maybe becoming negative
        - if it's decreasing, then stock price might be increasing