Quadrix

Quadrix is a proprietary stock-rating system created and maintained by Horizon Publishing Company and developed by Rich Moroney, Chief Investment Officer at Horizon Investment Services. Launched in 2000, Quadrix produces composite scores for individual stocks using a broad set of metrics to help investors narrow a large universe of equities for further analysis.

How Quadrix works

Quadrix evaluates stocks across more than 90 variables that are grouped into seven major categories. Each variable contributes to a weighted average that produces an overall score for a given stock. The system covers a universe of over 4,000 securities, including U.S.-listed companies and selected ADRs.

Seven categories used in Quadrix:
* Momentum – measures recent price trends and relative strength.
* Quality – assesses profitability, earnings consistency, and business quality.
* Value – evaluates valuation metrics such as price ratios.
* Financial strength – examines balance-sheet resilience and leverage.
* Earnings estimates – incorporates analyst forecasts and revisions.
* Performance – looks at historical returns and comparative performance.
* Reversion – identifies mean-reversion signals and potential bouncebacks.

Quadrix can also be applied to track performance at the industry-group level.

Uses and limitations

• Primary use: Quadrix is intended as a first-pass screening tool to narrow the investable universe and highlight stocks warranting deeper research.
• Distribution: The system is used internally by Horizon and made available to subscribers of Horizon’s investment publications.
• Not a portfolio optimizer: Quadrix is not a risk-based portfolio builder and does not implement Modern Portfolio Theory (MPT) to weight holdings or explicitly optimize risk-versus-return. It provides rankings and insights rather than automated asset allocation.

Key takeaways

• Quadrix is a multi-factor, proprietary stock screener using over 90 variables across seven categories.
• It produces weighted composite scores to rank stocks from a broad U.S.-listed universe (including some ADRs).
• The tool is suited for screening and idea generation, not for constructing risk-optimized portfolios.