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A breakdown of the 7 categories that weight the 0-100 score: what each one actually checks, why it has the weight it has, and what the score doesn't tell you.
Most financial sites show dozens of metrics without connecting them: P/E here, RSI there, debt-to-equity somewhere else. The problem is that none of these numbers says much on its own โ a stock with a low P/E can be a cheap opportunity, or it can be cheap because the company is in trouble. The StockIQ score takes 41 distinct signals and combines them by a fixed weighting, so the result reflects a balance across several angles instead of relying on a single indicator.
About 23 indicators on actual price history: moving averages (SMA 50/200), MACD, RSI, Stochastic, ADX, Bollinger Bands, Chaikin Money Flow, and pivot points. Important to understand โ this isn't a forecast. A technical indicator reads what has already happened on the chart (trend, momentum, strength of movement), not a prediction of what will happen tomorrow.
Checks the company's own financial health: current ratio (whether there are enough liquid assets to cover near-term liabilities), debt-to-equity, interest coverage, and profit margins. A company can look great technically (the stock is rising) and still carry real fundamental risk โ these two axes check completely different things.
The growth rate of revenue and earnings across several reporting periods, not just the current state. A company with high profit that's fading year over year scores lower than a company with lower profit but a consistent upward trend โ because the trend matters just as much as the level.
Tries to answer the hardest question: is the stock expensive, cheap, or fairly priced? The main model is DCF (discounted cash flow โ see the separate guide), alongside tangible net asset value (NAV) and a P/E multiple comparison against the sector. Three different methods that cross-check each other, since no single pricing model is perfect.
News (10%) checks sentiment on recent headlines โ a complementary signal, not a substitute for real financial analysis. Quality (10%) checks return on invested capital (ROIC) and operating-margin stability โ in other words, whether the company is run efficiently, not just growing in size. Risk (5%) checks beta versus the market and daily volatility โ high volatility lowers the score even if the rest of the data is positive, because risk is a real part of the picture.
A high score doesn't mean "buy now" and a low score doesn't mean "sell now". This is a tool for filtering and shortening research time, not a substitute for judgment. And of course โ all the data feeding the score is real data from commercial financial providers only (FMP, Finnhub), never invented or estimated figures.
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The information in this guide is intended for general educational purposes only and does not constitute investment advice. Full details on the disclaimer page.