What’s the difference between Zen Ratings and the Due Diligence Score?
We are pleased to introduce our new proprietary stock rating system, Zen Ratings. It is now the primary score you will see for each stock ticker we cover on the site.
If you're a longtime user of WallStreetZen, you may be wondering what Zen Ratings are and how they differ from our Due Diligence Score (formerly the Zen Score).
Related reading: Where did the Zen Score go?
The key difference is that while our Due Diligence Score applies classic value investing checks, which helps investors get a quick picture of a stock, our Zen Ratings system is supported by proven performance data.
Our proprietary Zen Ratings model analyzes 115 different factors that have been historically proven to drive stable growth for stocks.
It distills these factors into an easy-to-understand letter grade, with additional 7 Component Grades to help you evaluate the individual factors that play into the score, such as Value, Momentum.
A-rated (Strong Buy) stocks identified using this system have produced an average annual return of +32.52% since 2003. For more information on Zen Ratings, click here.
