To go a step further, quantitative analysts have also come up with another measure called alpha. For example, if the beta for all stocks held by a fund is 1.00 and the market goes up 10 percent, the fund would be expected to increase by the same percentage. But if the fund went up 12 percent, then the portfolio manager may be given credit for having a positive alpha of 2 percent. It's a way to measure the effectiveness of that manager. What I do believe is that over the long term the price of a stock will reflect the progress made in earnings per share, and the beta has nothing to do with that performance.
Stocks go up in value because the management has been able to make the company more profitable.
To me, that's more than coincidence. All of the ratings in the world can't help a stock when earnings deteriorate.