The components of The Value Line Ranking System for Timeliness include factors such as the 10-year trend of relative earnings and prices, recent earnings and price changes, and earnings surprises.
Yes, Virginia, There Is Hope: Tests of the Value Line Ranking System.
The higher the Value Line ranking for price stability, the more likely they would recommend it as a safe investment.
Accordingly, the Value Line ranking system is used here for the purpose of measuring safety of investment.
Thus, according to Table 2, the greater the following variables: the price earnings growth ratio, the Value Line rankings for safety, timeliness, and the level of operating leverage (risk), the more likely the firm would achieve a high level of stock price stability.