Methodology

How the Convergence Stock Rating reconciles many signals into one score.

The CSR is a single 1.0–5.0 conviction rating produced every weekday for every stock in our coverage universe. It reconciles independent valuation models, analyst alignment, and short, medium, and long-horizon outlooks into one number you can rank, filter, and watch over time.

Step 01 · Ingest

Pull signals from many sources, every weekday.

Every weekday we scrape consensus ratings and quantitative metrics from a curated list of providers including Yahoo Finance, MarketWatch, Morningstar, Zacks, MarketBeat, Barchart, CNN Money, Benzinga, WSJ, Barron’s, Briefing.com, and Business Insider. Each source contributes one or more signal types — a valuation model, an analyst consensus rating, a short/medium/long-term outlook, an earnings revision, or a price action proxy.

Step 02 · Reconcile

Map each signal onto a common 1–5 scale.

Different providers use different vocabularies. A Strong Buy from one source is normalised to the same numeric position as a 4.5 from another. Valuation verdicts (Undervalued / Fair / Overvalued), price-to-fundamentals ratios, and analyst panels are each mapped onto the 1–5 scale before any aggregation happens.

Valuation

Models, ratios, intrinsic value

P/E, PEG, P/B, P/S, FCF growth, and analyst-derived intrinsic-value targets, each translated into a 1–5 tier.

Analyst alignment

Consensus across desks

Buy / Hold / Sell distributions from multiple brokerages reconciled into a single conviction score.

Horizon outlooks

Short, medium, long

0–3 month, 3–12 month, and 12–36 month forward views, weighted to surface convergence across timeframes.

Step 03 · Score

Combine the signals into one number.

Reconciled signals are blended into a single 1.0–5.0 score. Sources that disagree wash out; sources that agree push the score toward the tails. A 4.0+ score means a stock is “convergent” — independent sources are landing on the same call.

Scores are published every weekday in the historical-reports table on each stock page, so the entire trajectory is visible. Daily moves of 0.2–0.3 are the norm; larger jumps highlight a regime change worth investigating.

The scale

Reading a 1.0–5.0 score.

Every CSR lands on a 1.0–5.0 scale where 5.0 is maximum bullish conviction and 1.0 is maximum bearish. 3.0 is the neutral midpoint. The bands below map a score to the verdict shown on each stock page.

4.0–5.0 Strong bullish · Convergent. Independent sources are landing on the same bullish call.
3.3–3.9 Bullish. A net-positive tilt, but with less agreement across signals.
2.5–3.2 Neutral. Signals offset each other; no clear directional edge.
1.0–2.4 Bearish. Sources converge to the downside.
Signal categories

What feeds the score.

The CSR draws on several signal categories. Valuation, analyst alignment, and the horizon outlooks are the primary inputs to today’s score; revision velocity, price action, and earnings quality are tracked as context that moves those inputs over time.

Valuation

Models & ratios

P/E, PEG, P/B, P/S, FCF growth, and analyst-derived intrinsic value, mapped to a 1–5 tier.

Analyst alignment

Consensus across desks

Buy / Hold / Sell distributions from multiple brokerages reconciled into one conviction score.

Short-term

0–3 months

Near-term outlook and momentum, weighted toward the most recent signal revisions.

Medium-term

3–12 months

The forward view most analyst price targets are anchored to.

Long-term

12–36 months

Structural / intrinsic-value view versus the current price.

Revision velocity

How fast views change

The rate and direction of rating and estimate revisions over the trailing weeks.

Price action

Market confirmation

Recent return versus the prior report, used to confirm or fade the consensus.

Earnings quality

Fundamentals check

Earnings and growth metrics that validate whether a rating is fundamentally supported.

Update cadence

Every weekday, after the close.

Scores refresh every weekday after US markets close. Each run scrapes the source list, re-maps every signal, recomputes the CSR for the whole coverage universe, and appends a new row to each stock’s historical-reports table — so the full score trajectory is always visible. Day-to-day moves of 0.2–0.3 are normal; larger jumps flag a regime change worth a look.

Worked example

From inputs to score.

Suppose a stock’s signals on a given day map onto the 1–5 scale as below. The CSR is the mean of the valid signals — sources that disagree pull toward the middle, sources that agree push toward the tails.

SignalReading1–5
ValuationUndervalued5.0
ZacksBuy4.0
Analyst consensusOverweight4.0
Barchart averageModerate buy4.5
Yahoo analystsHold3.0
Convergence Stock Ratingmean of signals4.1

A 4.1 sits in the convergent band: most independent sources agree on a bullish call, with one neutral reading keeping it short of the top of the scale.

Sample report

What you get in every report.

A full daily report contains the convergent board (top stocks by CSR), the day’s biggest CSR movers, sector-level aggregates, and per-stock breakdowns covering price, valuation, the signal-by-signal mix, and the 30-day trend. Subscribers also receive a Friday detailed spreadsheet (Premium) or daily spreadsheet (Pro).

Browse the latest reports in Research or jump straight to the Screener.

LATEST REPORT · 06.01.26