LUNA1 RESEARCH
Layered Understanding of Narrative Acceleration

The LUNA Framework

The LUNA Framework is Luna1's proprietary multi-factor investment research methodology designed to identify companies experiencing accelerating business fundamentals, improving institutional sponsorship, expanding competitive advantages, and constructive Stage 2 technical structure.

LUNA · Investment Research Framework

Separating price into the business fundamentals that create it.

Layered Understanding of Narrative Acceleration

01Earnings Acceleration
02Revenue Acceleration
03Institutional Sponsorship
04Competitive Moats
05Industry Structure
06Capital Allocation
07Technical Structure
08Risk Management
09Valuation

These nine factors combine into a proprietary LUNA Score ranging from 0 to 100.

Multi-Factor Investment Research Framework

From business acceleration to disciplined execution.

A

Trend Structure

  • Price above 50-day and 200-day moving averages
  • 50-day above a rising 200-day
  • Within 25% of 52-week high
  • Relative strength improving
B

Earnings Acceleration

  • 30%–40%+ quarterly EPS growth preferred
  • Multi-quarter gains and positive surprises
  • Growth at least twice the historical rate
  • Forward estimates increasing
C

Revenue Acceleration

  • 20%–25%+ quarterly revenue growth
  • Organic growth separated from acquisitions
  • Sequential and year-over-year acceleration
  • Flag sustained triple-digit growth
D

Operating Leverage

  • Gross and operating margin expansion
  • Revenue outpacing operating expenses
  • Profitability inflection
  • Free cash flow improvement
E

Institutional Sponsorship

  • Breakout volume expansion
  • Pullback volume contraction
  • Increasing fund ownership
  • Earnings gap-ups and sector leadership
F

Competitive Moat

  • Switching costs and qualification
  • Network, data, or distribution advantages
  • Brand and customer loyalty
  • Mission-critical products
G

Catalysts

  • New products and markets
  • Backlog or guidance growth
  • Margin recovery
  • Industry or regulatory inflection
H

Entry Rules

  • Buy from a constructive base
  • Prefer breakout or reclaim near pivot
  • Require volume confirmation
  • Avoid chasing excessive extension
I

Exit Rules

  • Exit failed breakouts
  • Respond to earnings deterioration
  • Watch institutional distribution
  • Exit when the thesis is invalidated
Interactive demo

Build a LUNA Score.

Adjust the sample inputs to see how the 100-point classification responds. This is illustrative data, not a security rating.

81LUNA
SCORE
Illustrative ticker · LUNA

LUNA-A

90–100LUNA Superleader
80–89LUNA-A
70–79LUNA-B / Inflection Leader
60–69Watchlist
<60Does Not Qualify