VQScore™
VQScore™ is a proprietary stock valuation system that helps over 70,000 individual investors and more than 1.5 million daily subscribers analyze, score, and rank stocks poised for big moves. It takes the most useful valuation strategies available and boils them down into one simple number that will tell you whether to buy, sell, or hold a stock.
The VQScore formula values a stock’s earnings power and whether EPS is accelerating or decelerating. Then, it compares that to the momentum of recent demand for the company’s shares and whether that’s increasing or decreasing.
The higher a stock’s score, the better.
A VQScore of 4.0 or higher puts a stock in the “Buy Zone.”
A stock’s VQScore is determined by its position our Value Quadrants. Each Value Quadrant represents a different combination of a stock’s Value, demand, and growth prospects.
Stocks in Quadrant 4 – meaning they have a VQScore of 4.0 or higher – give you the best opportunity at the biggest returns.
Buying these shares is like picking up Netflix stock before it soared to today’s record highs. A $1,000 investment in NFLX when it had a VQScore of 4+ would be worth more than $16,000 today.
Quadrant 3 stocks – which have scores ranging from 3.0 to 3.9 – are also undervalued. They do not have the market in their favor though, like those in Quadrant 4. That limits their future share-price growth.
Quadrant 2 stocks – which have scores from 2.0 to 2.9. A lot of these stocks are tied to healthy companies, but their shares aren’t priced to give you the maximum returns. They are trading closer to their fair value and, in some cases, are about to fall out of favor in the markets. A lot of these stocks used to have a VQScore of 4.
Quadrant 1 stocks – which have scores of 1.0 to 1.9. They are both overvalued and out of favor in the markets. This means you are not buying strong future growth when you pick up these shares at their current price.