The Sentiment Rank helps you understand how a stock is perceived by the broader market. A Sentiment Rank of 75 means that the company ranks higher than 75% of its peers in terms of investor and analyst confidence. A high Sentiment Rank reflects favorable analyst recommendations and a generally optimistic investor outlook. In many cases, it indicates that the market is currently rewarding the company for its results or future potential. On the other hand, a low Sentiment Rank shows that the market is skeptical or cautious. This might be due to negative news, missed expectations, or underwhelming performance. That said, a low rank doesn't automatically mean a company is in decline, just as a high rank doesn't guarantee it will outperform. Sentiment can shift quickly. Use this rank as a measure of current perception, and always investigate why the sentiment is strong or weak before making investment decisions.
The Sentiment Rank is a powerful tool for gauging market psychology. It reveals how investors and analysts are currently responding to a company’s story, performance, and positioning. A high Sentiment Rank often accompanies strong price momentum or optimistic forecasts, and it can be helpful when trying to identify companies riding a wave of market support.
However, sentiment is inherently emotional and reactive. It can swing based on headlines, earnings reports, or market narratives. That means it can sometimes run ahead of fundamentals or overshoot in either direction. A company with a high Sentiment Rank could be experiencing a temporary surge in attention, while a company with a low rank could simply be misunderstood, undervalued, or working through short-term issues.
This is why it’s critical to interpret the Sentiment Rank in context. Does the sentiment align with what you see in the company’s financials? Is the market reacting to real, lasting improvements, or just headlines and hype? Used thoughtfully, the Sentiment Rank allows you to either ride the market's momentum or spot contrarian opportunities that others are overlooking.
The Sentiment Rank is particularly useful when combined with Value, Growth, and Safety. For example, a company with strong financials but low sentiment could offer a buying opportunity before the market catches on. Likewise, a company with high sentiment but weak fundamentals might be overpriced. Either way, sentiment tells you what the crowd is thinking and gives you the chance to agree or to think independently.
Obermatt calculates the Sentiment Rank by aggregating a variety of market-based signals. These include recent analyst revisions, earnings surprises, stock price momentum, and media coverage. Each of these ranks is already based on several detailed metrics, which means the Sentiment Rank reflects a broad, multi-dimensional evaluation. Obermatt calculates the consolidated Sentiment Rank by averaging all four individual ranks. This averaging process smooths out distortions that may exist in any single metric, providing a more comprehensive and balanced view.
However, the process doesn't end there. To ensure the score is meaningful, this average is then compared against the averages of other companies in the same group or industry. The result is a relative rank between 1 and 100: the company with the best overall sentiment compared to its peers receives a Sentiment Rank of 100. In contrast, the one with the worst sentiment gets a rank of 1. All others fall somewhere in between. This makes the Sentiment Rank not just a reflection of a company’s perceived value, but a percentile-based comparison that shows how a stock stacks up in the broader market. In essence, it's a quick and powerful way to understand a company’s sentiment across multiple dimensions, all at once.
Analyst Opinion as an average compared with alternative investment opportunities.
Recent changes in average Analyst Opinion compared with alternative investments. A rank of 50 means that no analysts have changed their opinion.
Share of professional investors in the company compared with alternative investments.
More positive than negative news observed in professional markets compared with alternatives.
Measures a company’s financial strength based on debt levels, liquidity, and capital structure. Higher ranks signal lower financial risk.
Tracks how fast a company is expanding across key metrics like revenue, profits, and assets compared to its peers.
Evaluates how attractively a company is priced using valuation metrics like earnings, sales, book value, and dividends relative to competitors.
Provides a balanced score that merges Value, Growth, and Safety Ranks for a well-rounded view of a company's financial performance.
Reflects market perception by analyzing investor behavior and recent stock performance relative to peers.
Offers a holistic rating that combines all key Obermatt Ranks: Value, Growth, Safety, and Sentiment for a comprehensive company assessment.
The higher, the better. For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. These ranks are percentiles: a rank of 75 means the company outperforms 75% of its peers in that specific area. The higher the rank, the better the stock stacks up against its peers.
