We joined TDA Network’s Morning Trade Live on Friday, November 1 to provide insights into Earnings Distortion for companies in the S&P 500, especially AbbVie (ABBV). We show how you can use this information to pick better stocks.
Research from Harvard Business School and MIT Sloan shows earnings for the S&P 500 were distorted by an average of 22% in 2018. We’ve crunched the numbers and put together an Earnings Distortion Scorecard for all firms in the S&P 500.
The scorecard helps identify companies whose understated earnings give them a higher chance of beating earnings in the short-term.
This article originally published on November 1, 2019.
Disclosure: David Trainer, Sam McBride, and Kyle Guske II receive no compensation to write about any specific stock, sector, style, or theme.