If the neglect index is 0, should I buy?

No. Zero only says the price is near its one-year low. It does not say the price cannot go lower. Check valuation, money flow, and earnings before judging.

Is this the same as a large drawdown?

Similar but not the same. Drawdown measures how far the price fell from its high; the neglect index measures the position inside the full one-year range. A stock with a narrow range can have a small drawdown and still sit low in its range.

The Neglect Index: Finding Bottomed-Out Stocks by the Numbers

Mr. Latte

Guessing which stock has become cheap is easy to get wrong. The neglect index turns that guess into a number. It marks where the current price sits between the 52-week high and low, on a scale from 0 to 100. Near 0 means the stock trades close to its one-year low; near 100 means close to the high.

The calculation is simpler than it sounds

The formula is (current price − 52-week low) ÷ (52-week high − 52-week low) × 100. If a stock's one-year high is 100,000 and the low is 60,000, a price of 68,000 gives (68,000 − 60,000) ÷ (100,000 − 60,000) × 100 = 20. The stock sits in the bottom 20% of its one-year range.

Stocks with a low value are often called neglected: the market's attention has moved elsewhere and the price stays pressed down. A value above 85 means the stock trades near a fresh high, where attention is already crowded.

Low does not automatically mean opportunity

A stock can sit at the bottom of its range for two reasons: the market overlooked it, or the business actually got worse. The first case leaves room to recover; the second can keep falling. That is why the neglect index is never used alone. It is read together with valuation (PER) and the direction of money flow.

This is exactly why the InverseOne expectation score combines the neglect index with value and money-flow direction. When a low neglect index overlaps with a cheap valuation and money flowing back in, the odds rise that the market is starting to look again.

A practical reading order

First, screen for stocks with a neglect index of 30 or below. Next, check whether PER is below the sector average and whether money is flowing in today. Finally, look up why the stock was pressed down in the first place. A neglected stock whose story is being resolved is a recovery candidate.

You can follow this order directly on the discover screen: build a bottom-range list with the neglect screener, then confirm the rest on each stock page.

Frequently asked questions

If the neglect index is 0, should I buy?: No. Zero only says the price is near its one-year low. It does not say the price cannot go lower. Check valuation, money flow, and earnings before judging.
Is this the same as a large drawdown?: Similar but not the same. Drawdown measures how far the price fell from its high; the neglect index measures the position inside the full one-year range. A stock with a narrow range can have a small drawdown and still sit low in its range.

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The money flow and stock signals this service shows are estimated, for-reference information based on price and volume. It is not a solicitation to buy or sell any security, nor investment advice. It is a prior-close daily batch, not real-time quotes, and all investment decisions and responsibility are your own. The Trade button is a convenience link to your chosen brokerage's app/website; orders are placed directly at the brokerage and InverseOne is not involved in any order.