Stock Feeder's scoring system provides a comprehensive, multi-dimensional view of every stock in our coverage universe. Rather than relying on a single metric, the system evaluates each company across four critical dimensions that matter most to investors.
The Four Dimensions
Each stock receives a composite score from 0 to 100, blending Value (30%), Growth (25%), Momentum (25%), and Dividend (20%) signals. This weighted approach ensures a balanced assessment that captures the full picture of a stock's investment appeal.
Value (30% Weight)
The value score measures how attractively priced a stock is relative to its fundamentals. We examine metrics like the price-to-earnings ratio, price-to-book ratio, and forward P/E estimates to determine whether a stock is trading below its intrinsic worth.
Stocks with lower valuations relative to their sector peers score higher on this dimension. A deep-value stock trading at a significant discount to its historical average will approach the top of the scale.
Growth (25% Weight)
Growth captures the company's earnings trajectory and future potential. We analyze revenue growth rates, earnings per share trends, and analyst estimates for forward growth to score this dimension.
Companies demonstrating consistent double-digit revenue growth and accelerating earnings receive the highest marks. This dimension rewards businesses that are expanding their economic footprint.
Momentum (25% Weight)
Momentum reflects recent price action and market sentiment. Stocks demonstrating consistent upward trends and positive analyst revisions receive higher momentum scores.
This dimension captures the market's collective wisdom. When institutional investors and analysts are increasingly bullish on a stock, the momentum score rises to reflect that consensus.
Dividend (20% Weight)
For income-oriented investors, the dividend score evaluates both the current yield and the sustainability of dividend payments. Companies with long track records of dividend growth and healthy payout ratios score highest.
A stock paying a 3% yield with a 40% payout ratio and ten consecutive years of dividend increases will score significantly higher than one paying a 5% yield with a 90% payout ratio and no growth history.
How Scores Are Calculated
Our scoring algorithm normalizes each metric against industry peers and the broader market. A score approaching 100 indicates top-quartile performance across all dimensions, while a score below 30 suggests significant weakness in multiple areas.
The scoring system is designed to be a starting point for research, not a definitive buy or sell signal. Always conduct your own due diligence before making investment decisions.
Using Scores in Your Research
The most effective way to use our scores is in combination with other tools on the platform:
- •Stock Screener — filter by minimum composite score to find quality opportunities
- •Compare Tool — view score breakdowns side by side for competing companies
- •Leaderboard — discover the highest-scoring stocks across the market
- •Stock Picks — see our top picks organized by each scoring dimension
Score Grades
For quick reference, scores are also displayed as letter grades:
- •A (80-100) — Exceptional across multiple dimensions
- •B (65-79) — Strong overall with minor weaknesses
- •C (50-64) — Average, with room for improvement
- •D (35-49) — Below average in several areas
- •F (0-34) — Significant concerns across dimensions
This article is for educational purposes only and does not constitute financial advice. See our Disclaimer for details.