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Methodology

How We Score Stocks

Every morning before the bell, Wall Street Analyst reads 30+ live data sources across 1,000+ stocks and scores each on a 15-dimension engine. No single signal decides anything — every dimension is measured, scored, and rolled into one composite. Here is exactly how that works.

The 15 dimensions

📈Technical

RSI, MACD, moving averages, volume surges, mean-reversion and multi-timeframe momentum.

📊Fundamental

P/E, P/B, PEG, ROE, free cash flow, margins, growth rates and debt ratios.

🚀Momentum

Trend strength and acceleration across timeframes — what is moving before the crowd notices.

🗣️Sentiment

Analyst consensus and revision trends.

🐋Smart money

Institutional ownership changes, whale detection and conviction scoring.

Options flow

Unusual volume, implied-volatility skew, put/call ratios and whale-sized positioning.

💰Earnings intel

EPS surprises, revenue beats and post-earnings drift.

Earnings momentum

Estimate-revision velocity and surprise trajectory, tracked through a second independent earnings feed.

Earnings quality

Whether reported earnings are backed by real cash and durable margins.

🔑Insider activity

CEO/CFO/board purchases and sales, aggregated and scored over 90 days.

🏛️Congressional / 13F

STOCK Act filings and institutional 13F moves, cross-referenced.

💬Social sentiment

Reddit, StockTwits and social platforms, sentiment-scored.

🧮Quant factors

Factor exposures — value, quality, size, volatility.

🎯Analyst upside

Price-target implied upside and target dispersion (conviction).

🛡️Risk-adjusted

Return scored against the risk taken to earn it.

01

From dimensions to a score

Each dimension produces a 0–100 sub-score. Those combine into a single composite score (0–100) — most through adaptive weights, the rest as targeted confirmation bonuses — then rank into a percentile against the full screened universe — a 90 means top 10%. The composite maps to a plain-English signal, STRONG BUY → STRONG SELL.

02

Convergence detection

When 3+ independent signals cluster on the same stock at the same time — a technical breakout, unusual options flow, and insider buying together — that's a convergence event, flagged automatically. Agreement across unrelated sources is harder to fake than any single indicator.

03

Scored in the open — including losses

Every call is logged and scored from day one — winners and losers, timestamped, no cherry-picking. The track record is real and built in the open, the opposite of a polished screenshot you can't verify.

Rules we tested — and rejected

Every rule that could change how the portfolios trade gets backtested before it touches the book — and we publish the result either way. Most services only show you the rules that worked. These are ones the data killed.

Mechanical stop-loss enforcement REJECTED · JUN 2026

The hypothesis: automatically sell any position that trips its trailing stop, hard stop, or profit target, instead of letting the scoring engine decide at rebalance. We simulated 12 months of daily enforcement on every strategy, with proceeds held in cash until the next rebalance and the same trading-cost drag as every backtest we run.

STRATEGYBASELINE RETURNWITH STOPSRETURN IMPACT
Momentum Edge+268.9%+205.7%−63.2pp
Value Discovery+20.1%+20.6%+0.5pp
Catalyst Trader+148.4%+140.6%−7.8pp
Turbo Growth+71.6%+72.6%+1.0pp
Blue Chip Fortress+5.3%+5.3%0

The verdict: mechanical stops gutted the momentum book, cut Catalyst Trader's return, did nothing on the capital-preservation book (its holdings never hit a stop), and were a coin-flip on the other two. Stops didn't buy downside protection either: the worst drop actually got slightly deeper with stops on for three of the five books, and only Value Discovery's got shallower. The engine's nightly re-score already exits genuine breakdowns, so stops mostly sold winners on pullbacks before recoveries. The risk thresholds remain monitored and reported daily, but the model makes the final exit call. (12-month total-return simulation on current index membership and the July 2026 strategy constructions, data through July 9, 2026 — survivorship-biased, illustrative, not a forward-return guarantee.)

Track-record continuity: the five strategy definitions were sharpened on July 3, 2026 (distinct ponds, hard risk caps, contrarian value pool). Like a fund that changes mandate, each portfolio keeps one continuous record across that date — the performance chart marks the change, with day-by-day sequential tracking of the actual held baskets from July 3 forward and basket-based history before it. We show the seam instead of hiding it.

Turnover dampening (hysteresis) REJECTED · JUN 2026

The hypothesis: keep incumbent holdings unless a challenger beats them by a clear margin, to cut churn. The A/B showed it reduced trading but hurt returns in most configurations — the names it "protected" were the ones the model was right to replace. We shipped a rebalance cadence gate instead, which cut daily churn without touching the model's picks.

Earnings-blackout entry gate REJECTED · JUL 2026

The hypothesis: block new entries within 1–5 trading days of a scheduled earnings report, to sidestep binary event risk the model can't price. We A/B tested four blackout widths on the three momentum-family books over 12- and 24-month windows — 24 gated configurations against baseline. Turbo Growth paid up to −5.3pp of return for the gate; Catalyst Trader and Momentum Edge were coin-flips inside noise (−0.4pp to +2.6pp, no width consistent across windows — the widest gate rejected 2,300+ would-be entries on the daily-rebalance book and barely moved its result). The gate bought no protection either: the worst drawdown was unchanged or slightly deeper in nearly every configuration, with a best case of 0.1pp shallower. Why it fails: these books earn part of their edge from post-earnings drift — skipping the event skips the payoff along with the risk. (Total-return simulations on current index membership, data through July 15, 2026 — survivorship-biased, illustrative, not a forward-return guarantee.)

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Wall Street Analyst is financial software and education — not personalized investment advice, and we are not a registered investment advisor. Markets carry risk; past results don't guarantee future ones.