How We Score Stocks
PIG uses two distinct scoring systems — one tuned for earnings season trades and one for long-term research positions. Both are fully quantitative: every stock gets a numeric score built from tiered fundamentals and market data, then a letter grade. No opinions, no bias — just the numbers ranked.
Earnings Board Score
The Weekly Earnings Board ranks stocks that are reporting earnings in the current week. The score identifies which names have the strongest combination of revenue growth, valuation, liquidity, and timing heading into their report. It is designed for short-term earnings plays — getting in before the number drops and riding momentum if the setup is right.
The composite score ranges from 0 to 80 points across four factors, with penalties for missing data. Stocks that score below 25 are filtered out of the board entirely.
Factor 1 — Revenue Growth (0–30 pts)
Year-over-year revenue growth is the single most heavily weighted factor. We compare consensus 2025 revenue estimates against 2024 actuals. Companies growing revenue faster get a higher score because accelerating top-line growth is the strongest predictor of a positive earnings reaction.
| Revenue Growth | Points |
|---|---|
| Above 30% | 30 |
| 20% – 30% | 26 |
| 10% – 20% | 20 |
| 5% – 10% | 12 |
| 0% – 5% | 6 |
| Negative or zero | 0 |
Growth is computed from the data feed — if the API does not return both revenue figures the stock is penalized instead (see below).
Factor 2 — Enterprise Value / Revenue (0–25 pts)
EV/Revenue measures how expensive a company is relative to its top line. A lower ratio means you are paying less per dollar of revenue — a better value setup going into earnings. This is especially useful for growth stocks where traditional P/E doesn't apply because many high-growth names are not yet profitable.
| EV / Revenue | Points |
|---|---|
| ≤ 1x | 25 |
| 1x – 2x | 20 |
| 2x – 3x | 15 |
| 3x – 5x | 10 |
| 5x – 8x | 5 |
| Above 8x | 0 |
We use EV/Revenue instead of P/E here because many pre-earnings setups involve growth names that reinvest heavily and may not have stable earnings yet.
Factor 3 — 30-Day Average Volume (0–15 pts)
Volume measures liquidity and institutional interest. Higher average daily volume means tighter spreads, less slippage, and usually stronger post-earnings moves because more participants are watching the name. Thin stocks can gap on earnings but are harder to trade cleanly.
| 30-Day Avg Volume | Points |
|---|---|
| 10M+ shares/day | 15 |
| 5M – 10M | 12 |
| 2M – 5M | 9 |
| 1M – 2M | 6 |
| 500K – 1M | 3 |
| Under 500K | 0 |
Factor 4 — Days Until Earnings (0–10 pts)
Timing rewards stocks that are reporting sooner. The closer the earnings date, the more actionable the setup is right now. A stock reporting today or tomorrow gets maximum points; one reporting later in the week scores lower. This keeps the board focused on what's immediately tradeable.
| Days to Report | Points |
|---|---|
| Today (0 days) | 10 |
| Tomorrow (1 day) | 8 |
| 2–3 days | 6 |
| 4–5 days | 3 |
| 6+ days | 0 |
Missing Data Penalty
If the data feed is missing core fields, the score is docked rather than inflated. A stock missing revenue growth data loses 8 points; missing EV/Revenue data loses 6 points. This prevents low-data stocks from sneaking onto the board with artificially neutral scores.
| Missing Field | Penalty |
|---|---|
| Revenue growth unavailable | −8 |
| EV/Revenue unavailable | −6 |
Point Breakdown
Letter Grades
Stocks scoring below 25 are dropped from the board — they lack enough fundamental support to be considered an earnings play.
Research Watchlist Score
The Research Watchlist scores stocks you're tracking for longer-term positions. Unlike the Earnings Board, this score is not tied to a specific event — it evaluates whether a company is fundamentally undervalued, financially healthy, growing revenue, and liquid enough to trade comfortably. Think of it as a quantitative "is this stock worth owning?" checklist.
The composite score ranges from 0 to roughly 95 points across five factors, with penalties for missing data that can push the floor below zero (clamped to 0).
Factor 1 — P/E Ratio: Value (0–25 pts)
The trailing price-to-earnings ratio is the classic value metric. A lower P/E means you're paying less for each dollar of current earnings. Deeply undervalued stocks (P/E under 10) get the full 25 points, while expensive growth names above 50x get nothing. If P/E data is missing entirely, the stock takes a 5-point penalty — we want to know what we're paying.
| Trailing P/E | Points |
|---|---|
| ≤ 10 | 25 |
| 10 – 15 | 22 |
| 15 – 20 | 18 |
| 20 – 30 | 12 |
| 30 – 50 | 6 |
| Above 50 | 0 |
| Missing P/E | −5 |
Factor 2 — Forward P/E: Growth at a Reasonable Price (0–20 pts)
Forward P/E uses analyst estimates for next year's earnings. It catches stocks where trailing P/E looks expensive but future earnings are expected to compress the multiple — the classic GARP (growth at a reasonable price) signal. A missing forward P/E costs 4 points.
| Forward P/E | Points |
|---|---|
| ≤ 10 | 20 |
| 10 – 15 | 17 |
| 15 – 20 | 13 |
| 20 – 30 | 8 |
| 30 – 50 | 3 |
| Above 50 | 0 |
| Missing Forward P/E | −4 |
Factor 3 — Cash / Debt Ratio: Balance Sheet (0–20 pts)
Cash-to-debt measures financial health. Companies sitting on more cash than debt can weather downturns, buy back shares, or reinvest without dilution. A ratio of 3x or higher (or no debt at all) earns the full 20 points. If balance sheet data is unavailable, a 3-point penalty is applied.
| Cash / Debt | Points |
|---|---|
| ≥ 3x (or no debt) | 20 |
| 2x – 3x | 16 |
| 1x – 2x | 12 |
| 0.5x – 1x | 6 |
| 0.2x – 0.5x | 3 |
| Below 0.2x | 0 |
| Missing data | −3 |
Factor 4 — Revenue Delta: Momentum (0–15 pts)
Revenue delta compares trailing twelve-month (TTM) revenue to the last reported annual revenue. A positive delta means the company is growing its top line right now — not just historically. Negative deltas (revenue shrinking) earn zero. Missing revenue data costs 3 points.
| Rev Δ (TTM vs Annual) | Points |
|---|---|
| +20% or more | 15 |
| +10% to +20% | 12 |
| +5% to +10% | 9 |
| 0% to +5% | 5 |
| −5% to 0% | 2 |
| Below −5% | 0 |
| Missing data | −3 |
Factor 5 — Dollar Volume: Liquidity (0–15 pts)
Dollar volume (price × shares traded) measures how easy it is to get in and out of a position. Unlike raw share volume, dollar volume accounts for price — a $5 stock trading 10M shares is $50M in dollar volume, while a $500 stock trading 200K shares is $100M. Higher dollar volume means better fills and less market impact on your entries and exits.
| Dollar Volume | Points |
|---|---|
| $500M+/day | 15 |
| $100M – $500M | 12 |
| $50M – $100M | 9 |
| $10M – $50M | 6 |
| $1M – $10M | 3 |
| Under $1M | 0 |
No penalty for missing dollar volume — the stock simply scores zero for this factor.
Point Breakdown
Letter Grades
Stocks below 25 points receive no letter grade on the Research Watchlist — they need improvement on multiple fronts before they make the cut.
Key Differences
The two scoring systems are built for different time horizons and serve different purposes. The Earnings Board score is event-driven — it ranks stocks based on how strong the setup looks going into a specific earnings report. Revenue growth and valuation relative to sales matter most because those are the metrics that drive post-earnings price action.
The Research score is position-driven — it evaluates whether a stock is worth holding based on trailing value, forward expectations, balance sheet strength, and revenue trajectory. P/E and forward P/E take center stage because for a longer hold, you care about what you're actually paying for current and future profits, not just top-line momentum.
A stock can easily score an A on one board and a C on the other. A high-growth, expensive SaaS name might dominate the Earnings Board on revenue growth but score poorly on Research because of a high P/E and thin cash/debt ratio. Conversely, a deep-value industrial stock might grade well on Research but barely register on the Earnings Board due to slow growth and low volume.
