Alpha Ratings
The Group Alpha Ratings category includes composite and component metrics that evaluate the relative strength of industries and market themes across fundamental and technical dimensions. These ratings reflect the combined performance of the companies within each group—measuring growth momentum, profit quality, institutional activity, valuation, and price behavior.
By aggregating and normalizing company-level data, MarketAlpha ranks groups in real time to highlight areas of emerging or sustained market leadership. These metrics form the backbone of MarketAlpha’s group-based scanning engine, enabling users to quickly identify industries and themes that are outperforming across timeframes.
Each rating serves a distinct analytical purpose:
- Group Ratings (1D and 1Y) measure relative performance trends to capture short-term momentum and long-term leadership.
- EPS, Sales, and Profit Ratings spotlight groups with strong and improving financial fundamentals.
- Accumulation Scores surface groups showing institutional interest.
- Top Alpha Setups identifies where the best AI-confirmed setups are concentrated.
These insights are particularly effective when used to:
- Track sector rotations and theme breakouts
- Identify leadership clusters behind major market moves
- Filter for trades aligned with strong group context
- Pair with individual ticker setups to boost conviction
The ratings reflect true market impact and help traders quickly zero in on where strength is developing across the broader market landscape.
Top Alpha Setups
The Top Alpha Setups returns the number of the most compelling setups of the day in the group, based on MarketAlpha’s AI-selected Alpha Strategy (Long or Short) and enhanced by a comprehensive multi-factor evaluation. The signal adapts to the current market session—whether pre-market, regular hours, or post-market—to reflect only data that is available and relevant in real time.
Inclusion criteria:
- The AI-recommended Alpha Strategy – directional bias: Long or Short
- High AI Certainty Score – only setups with strong model confidence
- Acceptable AI-calculated Risk/Reward – only setups with a ratio of 2.0 or higher
- Low AI-calculated Path to Target – only setups with 2 or fewer resistance/support zones between price and target
The selection process includes:
- Chart structure – pivots, breakouts, trendlines, and AVWAP alignment
- Gap analysis – types, strength, direction, and follow-through at open
- Price action patterns – including divergence and reversal conditions
- Volume behavior – confirmation of accumulation, exhaustion, or breakout flow
- Fundamental ratings – EPS, Sales, Profit, Liquidity, Accumulation/Distribution
- Group strength – real-time and 1Y industry/theme performance
- Multi-timeframe consistency – daily and intraday signal convergence
- Other Proprietary AI models – applied to score overall setup quality
The signal is continuously monitored and recalculated in real-time based on evolving price action and updated data throughout each trading session.
This is a high-conviction, AI-driven signal designed to surface tickers with the strongest alignment of timing, structure, and multi-factor confirmation during active market conditions.
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Alpha Setups
Group Rating 1 Day
The Group Rating (1D) ranks each group by its intraday relative performance during the current trading session. Ratings range from 1 to 99, where 99 indicates that the group has outperformed 99% of all other group during the current trading day.
The score reflects the percentage of groups underperformed by the current group on the current trading day and is recalculated continuously throughout the market sessions.
Inputs are based on companies within each industry and include:
- Intraday price action during regular and external sessions
- Gap types, movements, and follow-through
- 1-day Relative Strength
- Forming 20-day highs or lows
- Strong individual movers
- Other proprietary momentum indicators
The model emphasizes early session leadership, breakout behavior, and short-term acceleration, making this rating ideal for spotting rotational flows, sector momentum, or intraday group strength.
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Group Rating 1D
Group Rating 1 Year
The Group Rating (1Y) ranks each group by its 12-month relative performance. Ratings range from 1 to 99, where 99 indicates that the group has outperformed 99% of all other groups over 1 year.
The rating is based on aggregate data from companies within each group and includes the following inputs:
- Total price performance over the past 12 months
- Distance to 52-week highs
- 1-year Relative Strength
- Other proprietary momentum indicators
Greater weight is given to recent momentum and leadership persistence to highlight groups that are not only outperforming historically but continue to demonstrate strength.
This rating is particularly useful for identifying sustained outperformers, rotational leadership, and long-term relative strength clusters—especially when layering with technical setups, earnings trends, or thematic filters.
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Group Rating 1Y
EPS Rating
The EPS Rating measures a group's earnings-per-share performance relative to all other groups on the platform. Ratings range from 1 to 99, with 99 representing the strongest relative EPS growth. This rating captures both near-term earnings momentum and long-term earnings strength using normalized, recurring earnings data.
Inputs include:
- Recent EPS growth – performance over the most recent two quarters
- Annual EPS growth – trailing four-quarter growth across up to five years
- Non-GAAP adjustment – excludes one-time events such as asset sales, tax benefits, or restructuring costs to isolate recurring earnings power
- Relative scoring – dynamically ranked against all tracked companies to highlight leaders and laggards
The EPS Rating rating is weighted by market capitlization.
This rating is especially useful when identifying earnings-driven breakouts, uncovering consistent compounders, or benchmarking profitability momentum across peers.
DailySales Rating
The Sales Rating evaluates a group's revenue growth trajectory compared to all other groups on the platform. It captures both recent acceleration and multi-year expansion, normalized to focus on sustainable top-line performance. Ratings range from 1 to 99, with 99 representing the highest relative sales performance.
Inputs include:
- Recent revenue growth – over the last two reported quarters
- Annual revenue growth – trailing four-quarter performance across up to five years
- Non-GAAP normalization – excludes one-time impacts from M&A, divestitures, or temporary revenue spikes
- Relative scoring – ranks each company against peers across all sectors and market caps
The Sales Rating rating is weighted by market capitlization.
This rating is useful for identifying groups with early-stage growth potential, surfacing top-line acceleration ahead of profitability improvements, and comparing peer strength in expanding sectors.
DailyProfit Rating
The Profit Rating measures a group's profitability by combining margin performance and capital efficiency over multiple timeframes. It is designed to capture both recent improvements and long-term consistency in profit generation. Ratings range from 1 to 99, with 99 indicating the strongest combination of profitability and capital efficiency relative to peers.
Inputs include:
- After-tax margin growth – trend over the last three reported quarters
- Return on equity (ROE) – measured across up to five years
- Pre-tax margin growth – evaluated over up to five years
- Trailing four-quarter calculation – applied to all metrics to ensure comparability across industries and reporting formats
The Profit Rating rating is weighted by market capitlization.
This rating is useful for screening high-quality groups with strong margins and durable profitability, identifying companies with improving operational leverage or scalable financial models, and pairing with EPS and Sales Ratings to build a complete view of financial strength.
DailyAccumulation/Distribution Score
The Accumulation/Distribution Score measures institutional buying or selling pressure over a one-quarter period using a composite of volume and price behavior. Inputs include:
- 50-day average volume
- Daily closing ranges (close vs. range)
- Relative price position vs. prior closes
- Magnitude and direction of daily price changes
- Other proprietary indicators to capture recent baselines
The score ranges from -3 to +3:
- +3 indicates persistent accumulation (strong institutional buying)
- -3 reflects sustained distribution (institutional selling pressure)
The score is weighted by market capitlization.
This metric is designed to detect quiet accumulation ahead of breakouts or early signs of large-scale exits. It is especially useful when layered with technical or fundamental metrics to confirm setup conviction.
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Acc/Dis Score
Fundamentals Ratings
The Fundamentals Rating aggregates 8 weighted financial metrics over the trailing 12 months, providing a composite view of valuation, profitability, and balance sheet strength. It is scored from A (strongest) to F (weakest).
The metrics include:
- Price to Cash Flow (P/CF)
- Price to Earnings Growth (P/EG)
- Price to Sales (P/S)
- Debt to Equity (D/E)
- Price to Book (P/B)
- Price to Earnings (P/E)
- Return on Assets (ROA)
- Return on Equity (ROE)
The Fundamentals Rating rating is weighted by market capitlization.
This rating enables quick filtering for fundamentally sound groups and is useful for identifying undervalued leaders, quality compounders, or candidates for long-term screening frameworks.
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FNDM Rating