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.

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[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.

    11 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

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