To test the performance of the K Score, we constructed a Top Picks portfolio. The Top Picks portfolio comprises the top 500 US stocks by market capitalization that are rated with a K Score of 9.
This US K Score was trained for the universe of the top 500 stocks by market capitalization, which is different from the US model that covers a broad set of stocks (roughly 3,800). The value of this predictive equity rating score ranges from 1-to-9. A higher K Score (7-9) assigned to a stock indicates a higher probability of outperformance, whereas a lower K Score (1-3) indicates a lower probability of outperformance. The top 500 stocks cover all the major industry sectors.
Please visit K Score's US full coverage to learn more.