Looking Under the Hood
Each pillar has its own 0-100 score, and you can click into any pillar to see the smaller pieces that make it up. This helps you understand why a pillar is high or low, and whether the situation is likely to change.
When two pillars disagree — say Quality is high but Momentum is low — it tells a story. Maybe the company is solid but the market hasn't noticed yet. Or maybe there's a sector-wide sell-off pulling down an otherwise good stock.
Inside the Quality Pillar
Quality uses well-known financial tests. The Piotroski F-Score gives up to 9 points based on things like: Is the company profitable? Is cash flow positive? Is debt going down? Are margins getting better?
It also uses the Altman Z-Score, which estimates how likely a company is to go bankrupt. A Z-Score above 3.0 is considered safe. Below 1.8 is a warning sign. The pillar also checks if the company has a "moat" — something that protects it from competitors.
Inside the Valuation Pillar
Valuation doesn't just look at one ratio. It checks the price-to-earnings ratio (P/E), price-to-book ratio (P/B), and PEG ratio (which adjusts P/E for growth). It also looks at what analysts expect the company to earn in the future.
The key detail: every ratio is compared to others in the same industry. A P/E of 25 is normal for a tech company but high for a bank. The pillar accounts for these differences automatically.
Inside the Growth Pillar
Growth checks how fast revenue and earnings per share are rising. It also looks at the "Rule of 40" for fast-growing companies — add the revenue growth rate and the profit margin together. If the total is over 40, that's a good sign.
But growth has to be real. A company that grows revenue by 50% but only because it bought another company is different from one that grew on its own. The Growth pillar tries to separate real, lasting growth from one-time jumps.
Inside the Momentum Pillar
Momentum looks at where the stock price is compared to its moving averages (the average price over the last 50 or 200 days). It also checks the RSI indicator, which tells you if the stock has been bought too heavily (above 70) or sold too heavily (below 30).
Momentum is the only pillar based on market behavior instead of company finances. It tells you what other investors are actually doing right now.
Inside the Risk/Stability Pillar
Risk measures how much a stock's price jumps around. It looks at volatility (the size of daily price swings), beta (how much the stock moves compared to the S&P 500), and drawdown risk (the biggest drops from peak to valley).
A stock with a high Risk score is relatively calm and steady. A low score means big swings — great if you're on the right side, painful if you're not. This pillar helps you match your investments to your comfort level.
Market Sentiment: The Extra Layer
In addition to the five pillars, TickerTrust tracks Market Sentiment. This combines news tone, social media buzz, and analyst opinions into an overall "mood" reading for each stock.
Sentiment doesn't change the TrustScore itself, but it appears alongside the pillars as extra context. When the pillars say "buy" but sentiment is very negative, you might want to wait for the mood to shift before jumping in.