Lev and Thiagarajan (1993) introduce 12 financial signals widely used in analyst’s reports, and find that most fundamental signals have predictive power in explaining contemporaneous stock returns of U.S. firms. Abarbanell and Bushee (1998) show that forming investment portfolios by longing high-score stocks and shorting low-score stocks based on 9 fundamental signals suggested by Lev and Thiagarajan (1993) yields significant positive returns.