Key Takeaways
- Quantitative stock-rating system for 4,000+ U.S. stocks.
- Scores stocks on momentum, value, quality, and strength.
- Uses weighted multi-factor algorithm for objective comparisons.
- Helps investors identify high-scoring outperforming stocks.
What is Quadrix?
Quadrix is a proprietary quantitative stock-rating system developed by Horizon Investment Services that evaluates over 4,000 U.S. stocks using more than 100 variables across seven key categories.
This system assigns percentile scores from 0 to 100, helping investors objectively rank stocks based on factors like momentum, quality, and value rather than relying solely on factor investing or traditional metrics.
Key Characteristics
Quadrix offers a comprehensive, data-driven approach to stock evaluation with several distinct features:
- Multi-factor analysis: It incorporates seven categories including Momentum, Quality, Value, Financial Strength, Earnings Estimates, Performance, and Volume.
- Weighted scoring: The Overall score emphasizes value, quality, and momentum, reflecting their historical effectiveness in predicting performance.
- Wide coverage: Evaluates thousands of U.S. stocks, enabling broad portfolio screening.
- Risk awareness: Financial Strength metrics help identify companies with weak balance sheets or higher bankruptcy risk.
- Updated regularly: Scores are refreshed periodically to reflect changing market conditions and earnings revisions.
How It Works
Quadrix applies a multi-factor algorithm that weights variables based on historical success and current market trends, offering a robust alternative to relying on single metrics or subjective judgment.
For instance, stocks with strong recent price gains and accelerating earnings receive high Momentum scores, while Financial Strength examines debt levels and cash flow to assess risk. Investors can use these percentile rankings to screen for stocks with high Overall scores, often above 80, to identify potential outperformers.
Examples and Use Cases
Quadrix is particularly useful for individual investors and advisors aiming for disciplined stock selection by integrating quantitative analysis into their decision process.
- Large-cap stocks: Investors may focus on companies highlighted in guides like the best large-cap stocks to find strong candidates with solid Quadrix scores.
- Growth-oriented portfolios: Screening high-scoring stocks in the best growth stocks category can complement Quadrix’s momentum and earnings factors.
- Diversification with ETFs: Combining Quadrix insights with broad exposure through best ETFs can balance risk and reward.
- Company-specific analysis: Investors analyzing companies like Delta can incorporate Quadrix scores to evaluate financial strength and momentum alongside other fundamental and technical analysis tools.
Important Considerations
While Quadrix provides a disciplined, quantitative approach to stock selection, it should be used in conjunction with broader analysis including macroeconomic trends and individual risk tolerance.
Keep in mind that no single rating system guarantees returns, and market conditions can shift rapidly. Combining Quadrix with an understanding of concepts like macroeconomics and monitoring rate of return expectations can enhance your investment decisions.
Final Words
Quadrix offers a systematic way to evaluate stocks by combining multiple financial and market metrics into a single score. To leverage its insights effectively, compare high-scoring stocks within your portfolio or watchlist and assess how they fit your investment goals.
Frequently Asked Questions
Quadrix is a proprietary quantitative stock-rating system developed by Horizon Investment Services that evaluates over 4,000 U.S. stocks using more than 100 variables across seven categories to assign percentile scores from 0 to 100.
Quadrix uses a multi-factor algorithm where variables like momentum, quality, value, and financial strength are weighted based on historical effectiveness, allowing investors to objectively compare stocks across financial, operational, and market metrics.
Quadrix evaluates stocks using seven categories: Momentum, Quality, Value, Financial Strength, Earnings Estimates, Performance, and Volume, combining these into an overall score that emphasizes value, quality, and momentum.
Individual investors and financial advisors seeking a disciplined, data-driven approach to stock picking can benefit from Quadrix, as it helps reduce emotional bias and is integrated into tools like AAII's weekly stock rankings.
While Quadrix provides objective rankings based on multiple factors, it is not solely predictive and should be used alongside other analyses to make informed investment decisions.
The Quadrix system is trademarked by Horizon and updated periodically to reflect current market conditions and maintain its effectiveness in stock evaluation.
Yes, Quadrix primarily evaluates more than 4,000 U.S. stocks, making it a tool focused on the American equity market.
