Financial glossary
Key terms used across Lucex analyses, explained in plain language. Educational tool, not financial advice.
30 terms across 4 categories
Valuation
P/E ratio
Compares a stock's price to its earnings per share, showing how many years of profit the market is paying for — plain-language glossary, free.
Analyst consensus
The average buy/hold/sell rating and price target from analysts covering a stock — a signal to weigh, not a forecast. Free glossary.
EPS
Net income divided by shares outstanding — the per-share profit figure that feeds directly into the P/E ratio. Plain-language glossary, free.
Dividend yield
Annual dividend paid per share as a percentage of the current share price — a core metric for income-focused investors. Free glossary.
Free cash flow
Cash left after operating costs and capital spending — often seen as more reliable than accounting profit. Plain-language glossary, free.
ROE
Net income divided by shareholders' equity — how efficiently a company turns invested capital into profit. Plain-language glossary, free.
Payout ratio
The share of earnings paid out as dividends — above 100% means a company is distributing more than it earns. Free glossary.
Price Target
The price level analysts estimate the stock could reach over the next 12 months.
Basics
Market cap
Share price times shares outstanding — the market's estimate of what a whole company is worth right now, plain-language glossary, free.
52-week range
The highest and lowest price a stock hit over the past year, useful for framing today's price against its recent range — free glossary.
Earnings report
A company's quarterly results release — revenue, profit, margins and forward guidance, often a high-volatility event. Plain-language glossary.
ETF
A fund that tracks a basket of assets (an index, sector or commodity) and trades on an exchange like a single stock. Free glossary.
Average cost price
The average per-share cost of your purchases, used as the reference point for calculating unrealized profit or loss. Free glossary.
Volume
The number of shares traded in a given period — higher volume generally makes a price move more credible. Plain-language glossary, free.
Sector vs industry
Sector is the broad category a company belongs to (e.g. Technology); industry is the more specific subset within it. Free glossary.
RSI
Technical indicator measuring the speed and strength of price movements (0–100).
Entry Zone
A price range calculated by Lucex where technical conditions appear potentially favorable.
News Sentiment
A measure of the tone of recent news on the stock (last 7 days).
Lucex Score
A 0–100 composite score combining technical conditions, analyst consensus, and news sentiment.
Risk
Volatility
How much a price swings over time, usually measured as annualized standard deviation of returns — uncertainty, not direction. Free glossary.
Beta
How much a stock moves relative to an index like the S&P 500 — above 1 amplifies moves, below 1 dampens them. Free glossary, plain language.
Drawdown
The percentage drop from a stock's most recent peak to its lowest point since — a direct measure of how deep a correction has been. Free glossary.
Debt-to-equity
Compares total debt to shareholders' equity to gauge financial leverage — read it against sector norms. Plain-language glossary, free.
Diversification
Spreading capital across different stocks, sectors and geographies to reduce portfolio risk without giving up expected return.
Behavior
Momentum
The tendency of a stock's recent price trend to persist a while longer — a documented effect that eventually fades. Free glossary.
Bullish / Bearish
Bullish means expecting a price to rise, bearish means expecting it to fall — the basic vocabulary of market direction. Free glossary.
Support / Resistance
Price levels where a stock has repeatedly paused or reversed in the past — a technical-analysis concept, not a guarantee. Free glossary.
Moving average
A stock's average price over a set rolling period (e.g. 50 or 200 days), used to smooth out day-to-day noise. Free glossary.
Loss aversion
A documented bias where losses feel roughly twice as painful as equivalent gains feel good — it can distort selling decisions.
Anchoring
Giving excessive weight to a reference price, like your purchase price, even though the market doesn't know or care what you paid.