James O'Shaughnessy: Trending Value

ADR (Average Daily Range)

The average daily swing of a stock in percent - measured over 10 or 30 trading days (columns "ADR 10D/30D"). An ADR of 5% means: on a normal day the gap between the intraday low and high runs about 5%. Traders look for movement - that is why stocks with an ADR under 1% are filtered out globally. Scanners that run without the global filters still include them; that is noted below their hit list. Not to be confused with ADR meaning "American Depositary Receipt" (a US certificate for foreign shares) - here ADR always means the daily swing.

AI Classification

Our company-by-company assessment of the AI boom based on SEC filings (the last four quarterly 10-Q reports and two annual 10-K reports): "Sells AI" (AI is a revenue source), "Threatened" (AI is a concrete business risk), "Uses AI" (operational use), or "Neutral" (no material AI exposure). Every classification requires at least two direct quote citations - otherwise the column shows "-". Not a quality judgment or a buy recommendation; the full file is on the stock page, methodology at /stocks/ai-rating-methodology.

Analysis (Full Company Analysis)

If the Analysis column shows "Read," there is an in-depth TickerGuard company analysis for this stock: business model, scanner findings, quarterly results, evidence from SEC filings, plus opportunities and risks. One click opens it directly.

Avg/Yr 3Y (Average Annual Return)

The stock's average annual return over the past 3 years. Shows at a glance whether a stock delivers over the long run or just had a short hot streak.

Earnings Date

The date of the next quarterly earnings report. Price gaps in either direction are common around this date - that is why we color it red when it is 7 days away or less, and yellow when it is 14 days away or less: elevated risk for fresh positions.

EPS (Earnings per Share)

Quarterly earnings divided by the number of shares outstanding. The most important growth metric: if EPS rises strongly over several quarters, the company is earning more money per share.

Free Cash Flow (FCF)

Operating cash flow minus capital expenditures - the money left over for everything else (debt paydown, acquisitions, or buybacks). Consistently positive free cash flow is one of the most honest signs of a healthy business model.

Funda Rating (Fundamental Rating A+ to F)

Our proprietary fundamental rating from 0 to 100 points with a school-grade rank from A+ to F. 50 points is the average across the universe, 100 the best possible score. Every stock is scored against all others by percentile: growth in earnings and revenue, earnings surprises, analyst estimates, and quality criteria such as margins, cash flow, and balance-sheet strength. Grades: A+ from 95, A from 75, B from 55, C from 45, D from 25, E from 5, F below — A/A+ are the fundamentally strongest stocks in the universe.

Market Capitalization (Mkt Cap)

The market value of the company: share price x total shares outstanding, shown here in billions of dollars. Micro caps (< $0.3B) are small and volatile, mega caps (> $200B) are heavyweights. Our scanner universe is deliberately capped at $50B - we look for stocks with room to run. The cap does not apply to scanners that run without the global filters; that is noted below their hit list.

Momentum

The driving force behind a price trend: stocks that have recently risen sharply statistically tend to keep rising more often than not. Momentum strategies therefore buy strength - not perceived bargains.

Net Margin

How much of revenue is left as profit? Net income divided by revenue, in percent. A 20% margin means: out of every dollar of revenue, 20 cents is left as profit. Rising margins are a strong quality signal.

Operating Cash Flow (OCF)

The cash that actually flows into the company from day-to-day operations - without accounting effects such as depreciation. A company can report book profits while still burning cash; operating cash flow reveals that.

Piotroski F-Score

A balance-sheet health check developed by Joseph Piotroski: 9 yes/no criteria covering earnings, cash flow, leverage, and efficiency produce a score from 0 to 9. Scores of 7 or higher are considered financially very solid, scores under 3 a warning sign.

Sector & Industry

Two levels of industry classification: sector is broad (e.g., Technology), industry is narrow (e.g., Semiconductors). Many strategies watch industry strength, because strong stocks are almost always found in strong industries.

Stage (Weinstein Stages 1-4)

Stan Weinstein divides every price chart into four stages: Stage 1 = basing (sideways after a downtrend), Stage 2 = uptrend (the only buying stage), Stage 3 = topping, Stage 4 = downtrend (avoid, or short candidate). Measured against the 30-week line (150-day moving average) and its slope.

View all terms in the Scanner Glossary