AI Market Cap

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Scoring Methodology PE / 3D / 5D Targets AI Suggested Trade FAQ

Scoring Methodology

Every stock is scored 0–100 based on five factors:

Analyst Coverage (25pts max) — Total analysts covering this stock, 1 point each up to 25. More coverage = higher score.

Buy % Conviction (25pts max) — Raw % of analysts with Buy or Strong Buy out of all ratings. We weight this to capture conviction level.

Strong Buy Count (20pts max) — Each Strong Buy rating adds 2 points. Stocks with 10+ Strong Buy ratings get the full 20 pts.

5D Upside (15pts max) — ATM straddle × 5, expressed as % of current stock price. Higher implied move potential = higher score.

Earnings Sentiment (15pts max) — Recent earnings history. Positive = 15pts, Mixed = 7pts, Negative = 0pts.

Stocks scoring 75+ are flagged Strong Buy. Stocks scoring 50+ are Watch.

PE / 3-Day / 5-Day Target Columns

PE Target

Estimated exit price using an ATM straddle at 1× implied move. This is the conservative estimate — assumes the stock moves exactly what the options market expects, in the direction of the trend.

3-Day Target

Estimated exit price using an ATM straddle at 3× implied move. Mid-range scenario for stocks 3–7 days from earnings.

5-Day Target

Estimated exit price using an ATM straddle at 5× implied move. Maximum upside scenario — appropriate for stocks 5+ days out or high-IV names where the straddle is expensive.

What is a Straddle?

An ATM straddle buys both a call and a put at the same strike. Its value changes based on how much the stock moves, regardless of direction. We use the straddle price to back-calculate what stock move is being priced in by the market.

AI Suggested Trade

The banner at the top highlights the best trade opportunity — the strong buy (score 75+) with the most days until earnings. Having more time to enter gives you flexibility and better positioning before the report.

A runner-up pick is also shown — the 2nd best strong buy by days left. Both banners update automatically every scan.

This is not financial advice. It's AI's trading observations on where the math and momentum align.

Frequently Asked Questions

Is this a financial advisor service?

No. AI Market Cap is a data tool for informational purposes only. We are not licensed financial advisors. Always do your own research.

How often does the scanner update?

The free scan runs automatically every market day at 6:30 AM PT. Subscribers can run up to 3 additional scans per day on demand.

What data sources are used?

Stock prices and option data come from Yahoo Finance. Analyst ratings are pulled from Yahoo Finance's recommendations endpoint. News is sourced from Yahoo Finance market articles.

What does "days left" mean?

Days until the next earnings report date. We show stocks within 45 days of reporting.

What does Short % mean?

Short interest - the percentage of shares that have been sold short and not yet covered. High short interest increases squeeze potential pre-earnings.

What does IV mean?

Implied Volatility — how much the options market expects the stock to move. High IV stocks have larger straddle targets and greater score potential.

What does Earnings Trend mean?

Positive = stock has beaten earnings estimates in recent quarters. Mixed = mixed results. Negative = missed recent estimates. This factor adds up to 15 points to the score.

Can I trade based on this?

You can, but AI Market Cap is not responsible for any gains or losses. This tool helps identify opportunities — the trade decision is always yours.

Disclaimer: AI Market Cap is for informational purposes only. Options data and price targets are estimates based on ATM straddles — actual results may vary. This is not a financial advisor service. Always do your own research before trading. AI Market Cap is not liable for any losses incurred from trades based on this data.