The Journal of Financial Economics published Core Earnings: New Data & Evidence, which proves:

  1. Legacy fundamental datasets are seriously flawed.
  2. Only our “novel database” enables investors to overcome those flaws.
  3. Our proprietary measures of Core Earnings and Earnings Distortion provide idiosyncratic alpha.
Learn more about the best fundamental research

Here's proof that superior data drives superior financial models and stock ratings.

Now, all investors, not just Wall Street insiders, can truthfully assess corporate earnings after excluding the unusual gains and losses that companies bury in footnotes, which legacy earnings measures, such as I/B/E/S Street Earnings or S&P Global’s (SPGI) Operating Earnings, miss.

For updates on how many firms are overstating and understating earnings every quarter, check out our Fundamental Market & Sector Trends reports. For example, as of 3Q21, 81% of S&P 500 companies were overstating EPS.

Sign up for our research here (individuals). Pros can sign up here.

This article originally published on January 12, 2021.

Disclosure: David Trainer, Kyle Guske II, and Matt Shuler receive no compensation to write about any specific stock, style, or theme.

Follow us on Twitter, Facebook, LinkedIn, and StockTwits for real-time alerts on all our research.

[1] The most recent Core Earnings and Street Earnings values are based on the latest audited financial data from calendar 3Q21 10-Qs.

[2] The earliest date that the 1Q21 10-Qs for all S&P 500 constituents were available.

[3]As proven in Core Earnings: New Data & Evidence, a paper in The Journal of Financial Economics, only Core Earnings enable investors to overcome the flaws in legacy fundamental data and research.

Click here to download a PDF of this report.

    15 replies to "It’s Official: We Offer the Best Fundamental Data in the World"

    • Howard Snevel

      Very educating

    • Michael Scott Allen

      Sounds great. Where do I sign-up?

    • Matt Shuler

      Michael,

      You can sign up here. Thanks!

    • Eric S Orner

      Your reseach seems great, but the performance of your ratings seems fairly weak. Do you ratings perform better with stocks or ETFs?

    • Matt Shuler

      Eric,

      Our ETF ratings are linked to our stock ratings. We rate ETFs based on our ratings of their holdings. For a look recent performance of our “See Through the Dip” thesis which utilizes our reliable fundamental data see Figure 5. At the end of 4Q20, our Most Attractive Stocks Model Portfolio had an annualized return of 9.6% since its inception in 2005 vs. 7.5% for the S&P 500 and 7.9% for the Russell 2000 over the same time. Thanks for the question.

    • clint

      I’m surprised my F Ford stock has a poor rating, ROIC #5 cash flow #5 Eco #3
      how is that, its one of the best stocks, analysys reads Mod Buy? thanks

    • Matt Shuler

      Clint,

      Thanks for the question. Our Stock Ratings are designed to measure the strength of the underlying business and the valuation of the stock over the trailing twelve month period. If Ford returns to historical levels of profitability, then it will likely earn a higher risk/reward rating. For more details about our Stock Ratings click here.

    • melanie glazer

      Would like to see debt that he public companies carry.

    • Matt Shuler

      Melanie,

      We calculate the adjusted total debt for all the companies we cover. See details here: https://www.newconstructs.com/adjusted-total-debt/

    • robert smolensky

      love all the information.

    • harshad vyas

      Thanks

    • Romen Lik

      Very promising. Where is the price?

    • Matt Shuler

      Romen,

      You can find the features and prices of our memberships here and here.

    • JOHN STERN

      In March and then again in May NC was recommending the purchase of AMCX at prices of 35 & 41 respectively. Now in Sept NC no longer recommends the purchase of AMCX at a price of 22. The change seems based upon the most recent quarter’s results. Does this mean that all NC recomendations are predicated upon the most recent quarter/

    • Matt Shuler

      John, our Stock ratings are based on 5 criteria to assess the overall risk/reward of the stock and incorporate the latest available financials filed with the SEC. In this case, the Stock rating for AMCX changed from Attractive to Neutral on 8/8/22 after AMC Networks filed its 2Q22 10-Q. Specifically, the company’s TTM ROIC fell to the third quintile in 2Q22, which earns the ROIC component of AMCX’s overall Stock Rating a Neutral rating. Additionally, AMC Networks’ TTM economic earnings fell YoY in 2Q22 while GAAP earnings rose YoY over the same time. The misleading trend in AMC Network’s earnings earns the Economic Vs. Reported EPS component of AMCX’s overall Stock Rating an Unattractive rating. The Unattractive Economic Vs. Reported EPS component rating and Neutral ROIC component rating primarily drive AMCX’s Neutral overall Stock Rating. You can find more details about how we rate stocks here: https://www.newconstructs.com/stock-rating-system/. Thanks for the question!

Leave a Reply

Your email address will not be published.