What is Pulse Score?
Definition
The StoxPulse Pulse Score is a proprietary composite metric (0-100) that rates a stock's overall health across five dimensions: Value, Growth, Health, Momentum, and Sentiment. Each dimension is scored 0-20, and the total determines a letter grade from A+ to F.
Detailed Explanation
The Pulse Score is calculated by analyzing a stock's latest financial data across five equally weighted dimensions:
1. **Value (0-20):** Evaluates whether the stock is fairly priced using P/E ratio, price-to-book, and PEG ratio. Higher scores indicate better value relative to earnings and assets.
2. **Growth (0-20):** Measures revenue year-over-year growth, earnings growth, and forward guidance beats. Companies with accelerating top-line and bottom-line growth score higher.
3. **Health (0-20):** Assesses balance sheet strength using current ratio, debt-to-equity, and cash position. Companies with low leverage and strong liquidity score higher.
4. **Momentum (0-20):** Tracks price performance within the 52-week range, recent price moves, and beta. Stocks trending upward with consistent momentum score higher.
5. **Sentiment (0-20):** Aggregates insider buying/selling activity, analyst upgrades/downgrades, and news sentiment scoring from NLP analysis of headlines and filings.
The Pulse Score is designed for retail investors who want a single, actionable metric that synthesizes multiple fundamental and technical signals. Unlike single-factor ratings, the five-dimension approach ensures a stock must be strong across multiple criteria to earn a top grade.
Grade mapping: A+ (90-100), A (85-89), A- (80-84), B+ (75-79), B (70-74), B- (65-69), C+ (60-64), C (55-59), C- (50-54), D+ (45-49), D (40-44), D- (30-39), F (0-29).
Formula
Pulse Score = Value (0-20) + Growth (0-20) + Health (0-20) + Momentum (0-20) + Sentiment (0-20)Example
A stock with Value 15, Growth 18, Health 12, Momentum 16, Sentiment 14 would have a Pulse Score of 75 (grade B+). This indicates strong growth and momentum but weaker balance sheet health, which an investor should investigate further.
Frequently Asked Questions
How often is the Pulse Score updated?
Why doesn't my ETF have a Pulse Score?
Is a high Pulse Score a buy signal?
Can I compare Pulse Scores across sectors?
Related Terms
Earnings Per Share (EPS)
Earnings Per Share (EPS) measures a company's net profit divided by its outstanding shares of common stock. It is one of the most widely used metrics for evaluating a company's profitability on a per-share basis and comparing performance across companies.
Price-to-Earnings Ratio (P/E)
The Price-to-Earnings Ratio (P/E) compares a company's current stock price to its earnings per share. It indicates how much investors are willing to pay for each dollar of earnings, making it one of the most common valuation metrics in stock analysis.
Market Capitalization
Market capitalization (market cap) is the total market value of a company's outstanding shares of stock. Calculated by multiplying the share price by the total number of shares, it represents the market's consensus valuation of a company's equity.
Debt-to-Equity Ratio
The Debt-to-Equity (D/E) ratio measures a company's financial leverage by comparing its total liabilities to shareholders' equity. It indicates how much debt a company uses to finance its operations relative to the value of shareholders' investment.
See It in Action
Disclaimer: The information on this page is provided for educational and informational purposes only and does not constitute investment advice. AI-generated analysis may contain errors or inaccuracies. Always conduct your own research and consult a qualified financial advisor before making investment decisions.
See Pulse Score in Action
StoxPulse AI automatically tracks and analyzes key financial metrics from earnings calls and SEC filings for your watchlist.