TRACK RECORD

Does the scoring system work?

We backtested our scoring model from Q4 2024 through Q1 2026 using quarterly rebalancing and actual earnings release dates. Equal-weight portfolios, no cherry-picking, full transparency.

Top 20 Highest-Scored Stocks

+110%Cumulative Return
+12%Russell 2000 (IWM)
+98%Alpha Generated
5 / 5Quarters Beating IWM

QUARTERLY BREAKDOWN — TOP 20

QuarterTop 20IWMAlpha
Q4 '24 -> Q1 '25-1.6%-9.6%+8.0%
Q1 '25 -> Q2 '25+9.8%+8.5%+1.4%
Q2 '25 -> Q3 '25+24.5%+11.3%+13.2%
Q3 '25 -> Q4 '25+10.1%+1.9%+8.2%
Q4 '25 -> Q1 '26+41.9%+1.2%+40.7%

Top 100 Highest-Scored Stocks

+77%Cumulative Return
+12%Russell 2000 (IWM)
+64%Alpha Generated
4 / 5Quarters Beating IWM

METHODOLOGY

Scoring Model

Each stock scored 0-100 on 8 weighted fundamental metrics: Revenue Growth (20%), Cash Runway (20%), Gross Margin (15%), Debt/Equity (10%), Price/Sales (10%), Rule of 40 (10%), Insider Ownership (10%), Share Dilution (5%).

Backtest Setup

Quarterly rebalancing using actual earnings release dates (no look-ahead bias). Equal-weight portfolios of the top N highest-scored stocks. Returns measured from rebalancing date to next quarter. Benchmark: iShares Russell 2000 ETF (IWM).

Full methodology

IMPORTANT DISCLAIMERS

  • *Past performance is not indicative of future results.
  • *Backtest uses a survivorship-biased universe (only currently listed stocks).
  • *No transaction costs, slippage, or market impact are included.
  • *Insider ownership uses current values for all historical periods.
  • *This is not financial advice. SmallCap Scanner provides data and scores for research purposes only.

Read full disclaimer

See which stocks score highest right now.

Full access to all 2,200+ scores, AI reports, and research tools. One bad investment avoided pays for a full year.

Start Free Trial