How We Rate Stocks & ETFs

Stockbruh uses a three-level weather system applied to five metrics for stocks and three for ETFs. Every Sunny/Cloudy/Thunderstorm follows deterministic rules — no black-box AI.

Stock Metrics (5)

1. Returns (3-Year Price)

☀ Sunny: >30% total return. ☁ Cloudy: 0%–30%. ⛈ Thunderstorm: negative. Example: NVDA typically rates Sunny.

2. Profitability (Net Margin & ROE)

☀ Sunny: net margin ≥15% and ROE ≥15%. ☁ Cloudy: moderate. ⛈ Thunderstorm: net loss. Example: AAPL rates Sunny.

3. Growth (Revenue YoY)

☀ Sunny: ≥10% revenue growth. ☁ Cloudy: low single digits. ⛈ Thunderstorm: declining. Example: META rates Sunny post-2023.

4. Earnings (EPS Trend)

☀ Sunny: positive and growing EPS. ☁ Cloudy: flat or inconsistent. ⛈ Thunderstorm: negative EPS. Example: MSFT rates Sunny.

5. Cash Situation (FCF & Debt)

☀ Sunny: strong free cash flow, manageable debt. ☀ Cloudy: moderate. ⛈ Thunderstorm: negative FCF or heavy debt. Example: GOOGL rates Sunny.

ETF Metrics (3)

Returns (5Y CAGR)

☀ ≥8% CAGR. ☁ 1%–8%. ⛈ <1%. Example: VOO rates Sunny.

Dividends (Yield)

☀ yield ≥1%. ☁ 0%–1%. ⛈ no dividend. Example: VYM rates Sunny.

Fees (Expense Ratio)

☀ ≤0.1%. ☁ 0.1%–0.5%. ⛈ >0.5%. Example: IVV rates Sunny.

Ratings are educational snapshots — not financial advice. Stockbruh is not a broker or investment advisor.