Methodology
WallStreetBuys runs every stock through the same fixed rules — every evening, the same for all. This page lists which numbers we use, how the scores and the signal are built, and what they can’t do.
Each score compares the stock with all 1,900+ stocks we follow. 80 means better than 80% of the others. The Total Score is the simple average of the three — they all count the same.
Price relative to earnings (P/E), sales (P/S) and book value (P/B). Each ratio is ranked against all other stocks on its own. Earnings count double, so a company without profit never reads as “cheap”. For banks, insurers and real estate only P/E and P/B count.
Not included: debt, PEG, growth.
Return on assets (ROA), profit margin, operating margin and the Piotroski F-Score — a nine-point health check of the financial statements.
Not included: debt, Altman Z2, return on equity. They are shown as separate figures on the stock page.
The price against its own 20-, 50- and 200-day averages, and how close it is to its 52-week high.
Not included: RSI and MACD. They belong to the technical signal.
Four checks, each counts +1 or −1. The total gives one of five steps. The same signal is on every stock page and decides the buy-signals list.
| Check | Yes | No |
|---|---|---|
| Price above the 50-day average | +1 | −1 |
| Price above the 200-day average | +1 | −1 |
| Daily MACD above zero | +1 | −1 |
| Weekly MACD above zero | +1 | −1 |
| Total | Signal |
|---|---|
| +3 to +4 | Strong Buy |
| +1 to +2 | Buy |
| 0 | Hold |
| −1 to −2 | Sell |
| −3 to −4 | Strong Sell |
If a number is missing (for example the 200-day average of a recent IPO), that check is left out. The averages are compared with the latest price.
A red flag is a warning from the numbers — not a forecast. Each rule has two levels: a warning, and critical from the second threshold.
| Red flag | Warning from | Critical from |
|---|---|---|
| High debt (debt to equity) | above 150% | above 300% |
| Weak financial health (Piotroski F-Score) | 3 of 9 or lower | 1 or lower |
| Weak balance sheet (Altman Z2; not for banks and financials) | 1.1 or lower | below 0 |
| Negative profit margin | below 0% | below −20% |
| Negative return on equity | below 0% | below −20% |
| High short interest (share of the free float) | above 10% | above 20% |
| Unsustainable dividend (payout ratio) | above 100% | above 150% |
| Falling earnings (quarter vs. same quarter last year) | down more than 20% | down more than 50% |
The price target is the average of the analysts’ 12-month price targets for the company — Wall Street’s consensus. It is other people’s estimate, not a calculation of ours, and price targets are often wrong.
If the price is more than 10% below the target, the stock page calls the stock undervalued; more than 10% above, overvalued; in between, fairly valued. If no analyst covers the stock, we say so — and do not make up a target.
Each score compares the stock with all 1,900+ stocks we follow. 80 means the stock does better on that measure than 80% of the others. The Total Score is the simple average of value, quality and momentum — all three count the same.
Four checks: is the price above its 50-day average? Above its 200-day average? Is the daily MACD positive? Is the weekly MACD positive? Each yes counts +1, each no −1. From +3 the signal is Strong Buy, at +1 or +2 Buy, at 0 Hold, at −1 or −2 Sell, and from −3 Strong Sell.
Yes. The buy-signals list shows exactly the US stocks whose technical signal on the stock page is Buy or Strong Buy, sorted by the Total Score. The best-stocks, dividend, most-shorted and compare pages show the same signal.
Prices, financials, dividends, earnings dates, analyst price targets and short interest come from our data provider EODHD. Insider trades are SEC Form 4 filings. Everything is recalculated after each US market close.
No. Scores and signals come from fixed rules and market data. They know neither your portfolio nor your goals. Use them as a starting point for your own decision.
Scores, signal, red flags and price target — all on one page.
See Apple’s pageSee today’s buy signals