GAAP earnings, despite popular opinion, don’t accurately measure profits. Companies can, and do, manipulate GAAP earnings through accounting rule loopholes. To find a “better” metric, investors turn to non-GAAP, whisper numbers, or Street Earnings[1] to get additional insight into a company’s true fundamentals.
But, those numbers are, in fact, also proven to be misleading.
You need a Professional Membership or higher to view all the content on this page.
Already a member?
Learn more about our research here.
The Real Solution
Rather than rely on flawed GAAP or Street Earnings, we use FinSights, our AI agent from Google Cloud, to find companies most likely to beat Street earnings. Like all of our research, FinSights is fueled by the proprietary data from our Robo-Analyst AI, which analyzes the footnotes of financial filings to calculate Core Earnings, a proven superior measure of earnings.
In this report, we’ll show:
- the frequency and magnitude of understated GAAP Earnings in the S&P 500,
- Street Earnings are flawed and misleading,
- how Core Earnings generate novel alpha, and
- the five S&P 500 companies most likely to beat Street estimates next quarter.