Can the Alpha Rating Be Used to Predict the Future Performance of a Stock?

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 5-Jun-2023, a period of 7 years and 5 months:

Alpha Ratings delivered 21.16% annualised in comparison to 12.09% of the benchmark while taking peak risk (Max. drawdown or fall from peak to trough) of -29.81% in comparison to -38.44% of NIFTY. 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.

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