42 Port Methodology

Traditional financial news tells you what happened. 42 Port focuses on what it could mean for a stock.

Stock prices react to catalysts: earnings reports, regulatory decisions, major contracts, lawsuits, leadership changes, and other developments that can shift market expectations. Event-based investing focuses on these catalysts. Each news event about a stock is scored as it arrives, and those scores roll up into a single view of the company. We apply this methodology systematically and at scale, in real time, across thousands of daily events.

Why Numbers Matter

Financial markets generate an enormous amount of information. Headlines compete for attention, sentiment shifts quickly, and distinguishing meaningful developments from background noise can be challenging.

42 Port was created to bring structure to that complexity.

By translating news events and market sentiment into consistent numerical signals, we aim to help investors:

• Focus on what matters: Spot developments with potentially meaningful implications for individual stocks.
• Understand market momentum: See how news sentiment and recent catalysts contribute to a stock's current signal.
• Put events in context: Evaluate both the potential impact and the duration of individual developments.
• Compare information consistently: Apply a common analytical framework across companies and events.
• Discover new ideas: Surface opportunities through structured analysis rather than an endless stream of headlines.

Our goal is not to replace investor judgment, but to provide a clearer foundation for informed decision-making.

For Every Company: The Stock Signal

The 42 Stock Signal tracks how bullish or bearish a stock's current momentum is, weighing its latest news sentiment against the broader market context. Expressed through eight levels, from Extreme Positive to Extreme Negative, the Stock Signal provides a concise view of the forces currently shaping a company's market narrative.

The Signal combines two primary inputs:

1. 42 Market Sentiment: our live pulse on the overall market

42 Market Sentiment blends current price movement with the Fear Index into a single label, providing context for interpreting individual stock developments.

Market context matters because the same news can have different implications in a calm, optimistic, or fearful market.

2. 42 Stock Score: the stock's own news picture

The Stock Score combines two components:

• News Sentiment: The overall tone of recent news, meaning how bullish or bearish the flow looks when taken together.
• Latest Impulse: The newest catalyst and how far it breaks from the prevailing trend. Think of it as a surprise-and-momentum gauge that highlights developments that may change the narrative.

Together, Market Sentiment and Stock Score form the 42 Stock Signal, connecting company-specific developments with the broader market environment.

For Every Stock Event: Impact & Duration

Impact Score: from +10 to −10

Every news event receives an Impact score reflecting its assessed potential to influence the stock's price, summarized in one easy-to-understand number.

Positive scores point to potentially favorable news and negative scores to unfavorable news. The further from zero, the stronger the expected effect.

Duration: 1-Day, 2-Day, or 1-Week

Quick blip or lasting shift? Duration shows how long an event may shape a stock's direction, so you can understand the likely timeline of the market's reaction.

Impact and Duration are complementary: Impact describes the potential magnitude of an event's influence, while Duration estimates its likely persistence.

What Our Scores Are, and What They Aren't

Our scores, signals, and summaries are analytical estimates generated by our proprietary technology. They are designed to help you prioritize information, understand market developments, and evaluate news in context. They don't predict prices, guarantee outcomes, or tell you to buy or sell. Our content can contain errors or delays, so we encourage you to consider the underlying events, evaluate information independently, and make investment decisions based on your individual circumstances and risk tolerance.

Independent by design. Our revenue comes from optional 42 Premium subscriptions. We don't accept payment to cover, score, or promote any stock.

Questions About Our Methodology?

Spotted a score or summary that looks wrong, or want to know more about how we work? Email us at support@42port.com or call (332) 275-4243.

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See It in Action

Download 42 Port and get the bottom line on every stock event.