A 0 to 100 read on whether a stock is outperforming the market. Price motion is noise. Durable relative strength is leadership.
Every major data platform has some version of a relative strength score. IBD uses a one-year weighted rate of change. Morningstar uses a 12-minus-1 month momentum filter. ChartMill ranks the full database. They exist because relative strength is a well-studied way to separate stocks that have led the market from stocks that have lagged it.
Leadership Score is used each day before Phospho decides which 20 trades to surface in every Morning Luminary, backed by multi-pillar analytics.
When Leadership Score is shown in our intelligence, here is how to read it:
A 78 places this stock in the Leader zone. It has been outperforming the three-benchmark basket reliably across most of the five timeframes, with the outperformance coming at controlled volatility.
The number itself is not a decision. The full analysis in your Deep Dive report does the work, so when the trade is ready to act on, the judgment is yours.
Five bands align to the three zones shown on the tile above. Only Band 5 sits in the Laggard zone.
A Leadership reading is most useful when combined with the other analytical pillars. Four patterns illustrate how the signals interact.
These are illustrative patterns. Every Deep Dive report spells out the specific signal combination that mattered for its trade idea.
Leadership runs through every analytical layer of the platform. In two surfaces you see it directly. In the third, it shapes which trades reach you.
Leadership is durable outperformance. The score measures performance against three benchmarks, consistency across five timeframes, and direction of the move. A volatility adjustment discounts gains earned with high risk.
Component weights are derived from historical stability, not from optimization toward a forward performance target.
The four inputs above combine into a single weighted composite. Below, that process as a timeline.
A score of any kind carries uncertainty about the future. Leadership is a backward-looking measurement of structural strength. It is most credible when its limits are understood upfront.
The score itself is structurally similar. How Phospho uses it is different.
IBD's RS Rating is a standalone ranking traders use to find leaders on their own. Phospho's Leadership Score is one component of the analytical thesis behind every Morning Luminary trade idea. The score is not sold as a tool. It is published as part of the work Phospho does for you.
Daily, at the time of Deep Dive generation.
No. The score is a filter for quality, not a forecast.
It measures structural strength in the recent past. Read it alongside Exhaustion, Continuation, and the other pillars before drawing any conclusion about forward performance.
Yes. Strong leaders can reverse.
This is most common when Exhaustion is also elevated. Leadership is a starting point, not a conclusion.
The score itself is structurally similar. How Phospho uses it is different.
IBD's RS Rating is a standalone ranking. Phospho's Leadership Score is one component of the analytical thesis behind every Morning Luminary trade idea.
Daily, at the time of Deep Dive generation.
No. The score is a filter for quality, not a forecast.
Read it alongside Exhaustion, Continuation, and the other pillars.
Yes. Strong leaders can reverse. Most common when Exhaustion is elevated.