We are November’s #5 ranked stock picker in Healthcare per SumZero Rankings. SumZero is a highly exclusive buy-side only community with over 16,000 pre-screened professional portfolio managers.

Below are some of our best picks, which utilize the superior core earnings[1] and Earnings Distortion research featured by the HBS & MIT Sloan Paper, “Core Earnings: New Data and Evidence”.

We give members of New Constructs access to these ideas, as we do all research, before we post them to SumZero. 

Long Calls

  1. Williams-Sonoma (WSM) – up 106% since publishing in September 2016
  2. NVR Inc. (NVR) – up 99% since publishing in April 2017
  3. D.R. Horton (DHI) – up 73% since publishing in April 2020
  4. Alphabet, Inc. (GOOGL) – up 61% since publishing in February 2018
  5. HCA Healthcare (HCA) – up 42% since publishing in June 2020

Short Calls

  1. Hertz Global Holdings (HTZ) – down 75% when position closed in April 2020
  2. TrueCar Inc. (TRUE) – down 67% when position closed in June 2019

Learn more about the best fundamental research

This article originally published on November 6, 2020.

Disclosure: David Trainer owns DHI and HCA. 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] Our core earnings are a superior measure of profits, as demonstrated in Core Earnings: New Data & Evidence a paper by professors at Harvard Business School (HBS) & MIT Sloan. The paper empirically shows that our data is superior to “Operating Income After Depreciation” and “Income Before Special Items” from Compustat, owned by S&P Global (SPGI).

Click here to download a PDF of this report.

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