What is the News Sentiment score for a stock?

News Sentiment scores the average tone of recent headlines about a ticker, from -1 (bearish) to +1 (bullish), over a trailing 7-day window. Each headline is read and scored by a language model; the score you see is the average across them.

Why scoring financial language is harder than it looks

Naive sentiment tools routinely misread financial language. "Missed estimates" and "beat expectations" both look like ordinary prose to a scorer trained on generic text, yet they carry opposite financial meaning. So does "guidance cut" versus "margin expansion", or "shares fall on record profit" — a headline that is simultaneously good news and a bad day.

The scoring model is therefore asked for two things per headline: a direction (bullish, bearish or neutral) and a conviction — how strongly it holds that view. The two are multiplied to produce that headline's score, so a hedged, ambiguous headline lands near zero rather than being forced into a side. The averaging then happens across those signed scores.

Sentiment lags and can reverse quickly

News sentiment reflects what has already been published, not what will be published next — a name with strongly negative 7-day sentiment can turn on a single subsequent headline, and sentiment from a thinly covered ticker is noisier than from a heavily covered one. Quantustik treats it as a supplementary signal alongside price action and fundamentals.

Frequently asked questions

What does a News Sentiment score of 0 mean?

Neutral — recent headlines about the ticker skew neither bullish nor bearish on average over the trailing 7-day window.

How is each headline scored?

A language model reads the headline and returns both a direction (bullish, bearish or neutral) and a conviction. The two are multiplied, so a hedged or ambiguous headline scores near zero instead of being forced onto one side.

Can news sentiment predict where a stock is headed?

No — it reflects already-published coverage, not future headlines, and can reverse quickly. It's a supplementary input, not a forecast on its own.

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Educational research only — not investment advice.