New Constructs

Wanna be up in a down market? Take a look at "Core Earnings by New Constructs", a proven source of novel alpha. Proven not just by Harvard Business School and MIT Sloan School of Management studies in the Journal of Financial Economics, but also proven with live stock market performance. Last year, Bloomberg launched 3 indices that monetize this alpha. 1. The Very Attractive-Rated Stocks Index (ticker:?BNCVA1T:IND), beating the S&P 500 by over?4% YTD. Official name is Bloomberg New Constructs Ratings VA-1 Index. 2. Core Earnings-Weighted S&P 500 Index (ticker:?B500NCT:IND), beating the "legacy" S&P 500 by over 1% YTD. Official name is Bloomberg New Constructs 500 Index. 3. The 3rd and most popular index... get the scoop on Friday, April 11th at 11amEDT. Sign up below: https://lnkd.in/g2Bu_SJZ

When if we told you that there's a new, simple method to improve your stock portfolio performance? The method is to weight the stocks in your portfolio based on Core Earnings, a new better way to calculate profits, instead of market weighting Bloomberg tested this method rigorously and developed the Bloomberg New Constructs 500 Index (B500NCT:IND). Think of this index as a Core Earnings-Weighted S&P 500, compared to the legacy S&P 500, which has followed a market weighting methodology for 60+ years. Proof is in performance. Jan 1 through Mar 20, the Core Earnings-Weighted S&P 500 is already beating the legacy S&P 500 by 1.57% (down 2.06% v -3.63%). Core Earnings is a proprietary metric from New Constructs, which leverages AI to analyze financial filings, esp footnotes, and derive this new proven-superior measure of earnings. Technology is making our lives easier in so many ways - and now it's helping with alpha, too...if you have the data. #machinelearning #AI #RoboAnalyst #alpha

If you like being up in a down market, we recommend you join our latest live training today: 1pmET. Here's the link: https://lnkd.in/gYVVf-qR We will show you how to access all the same ratings that drive the "Very Attractive Stocks Index, officially known as the Bloomberg New Constructs Ratings VA-1 Index?(ticker:?BNCVA1T:IND). The bottom line is the stock market is full of noise. Every day, Wall Street analysts flood the airwaves with opinions, predictions, and complex jargon. But here’s the truth: you can get reliable research if you're willing to look a little outside the box of traditional research. What really matters is finding the real indicators of explosive stock growth. And that’s exactly what we’ve done at New Constructs. In this training, here's what you'll learn: - How to pick the right stocks in every market environment, especially a tough one. – Accounting Loopholes: How they distort a company’s true earnings potential. – Our Stock Rating System – Exclusive Access: How to get the best reseaerch in the business.

This report on NVIDIA $nvda is one of the most prescient of the year.

This market is rough! Tired of taking a beating and interested in some new options? You're not alone. How about a better index than the ole S&P 500 ($SPY)? Maybe there's a better way after 68yrs. There is a new alternative from us and Bloomberg. We created an index that weights stocks based on Core Earnings instead of market cap. The result: Performance improves!! 68yrs of the same methodology is a long time for the same ole same ole S&P 500. Maybe, it's time for something new and better? Our "Core Earnings-Weighted S&P 500 Index” (ticker: B500NCT:IND) is managed by Bloomberg. The official name is Bloomberg New Constructs 500 Index (ticker: B500NCT), and it's beating $SPY by 1.25% already YTD. Core Earnings is a proprietary measure from New Constructs. It is proven to produce novel alpha by Harvard Business School and MIT Sloan School of Management professors' paper in the Journal of Financial Economics. Charles CY Wang Eric So Ethan Rouen Why not make every index better by weighting stocks based on Core Earnings instead of market cap?

More signs of a ruthless market today with Affirm ($AFRM) down another 6% after falling 40% in the past month. This stock is a prime example of how a some unbiased work on the valuation make it clear that the stock was at very high risk of a correction. During a recent Earnings Recap session, we reviewed Affirm (AFRM: $62/share) and did a deep dive into its valuation. The results were shocking. Rarely will you see a stock with a valuation so disconnected from the fundamentals of the business. Let’s get specific Expectations Investing Analysis on AFRM As we do for all of our Reverse DCF Case Studies, we use our valuation models to quantify the future performance of the company required to justify its current stock price. Specifically, our model shows that to justify ~$62/share Affirm would have to: ?- grow revenue at 26.3% compounded annually for 8 years while also ?- improving its return on invested capital (ROIC) from -8% to 122% and - improving its net operating profit after tax (NOPAT) from $0.3 billion to $3.6 billion. Let’s put some context around those expectations. Benchmarking Expectations for AFRM First, growing revenue at 26.3% CAGR for 8 years means Affirm’s revenue would be $15 billion in 2033. While also growing revenue at a rapid pace, the stock price implies Affirm will also increase its ROIC and NOPAT to very high levels. See Figure 1 in free report for details. As we discuss in our latest reverse DCF case study video (in the free report), we think there are several reasons why the expectations embedded in Affirm’s current stock price are too high. Competitive Realities Large revenue growth, like what’s embedded in Affirm’s stock price, implies significant market share gains. We note that market share gains are typically won with lower prices, which are not possible with a company that must also increase its ROIC and NOPAT to very high levels. In other words, Affirm’s stock price is implying a doubly-incredible future where the company enjoys huge revenue growth and NOPAT and ROIC improvement as well. More Expectations Investing Case Studies If you enjoyed seeing what we show for Affirm’s real cash flows as well as the future revenue expectations baked into the stock price, you’ll love our other reverse DCF case studies. If you’re interested in seeing more examples of how our DCF model works, I recommend checking out the Reverse DCF Case Studies here in our Online Community. To join our Online Community, complete this form. Our community is free to join as is access to the Reverse DCF case studies. Free full report here:?https://lnkd.in/gWeuu9U2

Wow, the market has been brutal this year. Looking for a safe harbor or a new edge? Year to date, the Bloomberg New Constructs Very Attractive Stocks Index (ticker: BNCVA1T) is up 2% while S&P 500 is down 4.1%. That's pretty good. How many of your stocks get a Very Attractive rating? Get the answer for free here: https://lnkd.in/dRb4DYNy. We're really excited to see proof of the quality of our research in stock market performance in real time and with a real index. Diligence matters - especially these days.

Our Last Earnings Watch call is today at 3pmET: We'll cover: AVGO, JD, KR, BJ, GAP, M, VG, FIZZ, FL, CBRL and your requests Looking for a better way to pick stocks? Starting to question the popular narratives?? ? Unless you’re already a client, you probably do not realize how much Wall Street manipulates earnings. ? Ready to take the red pill?? ? Don’t worry, we make it easy. Simply join our next?"Earnings Watch"?party. It’s free. ? We’ll show you our stock ratings and what the real earnings are. We’ll share our advanced tools for reading footnotes and demystifying stock valuations. ? It starts in just a few hours at 3:00 PM EST.? ? We’ll analyze these major companies,?including:?? Your requests, and Broadcom (AVGO),? JD.COM (JD),? Kroger (KR),? BJ's Wholesale Club’s Wholesale (BJ),? Gap (GAP),? Macy's’s (M),? Venture Global LNG (VG),? National Beverage Corp. (FIZZ),? Foot Locker (FL),? Cracker Barrel (CBRL) …and more ?This isn't your typical earnings recap. ? We're going beyond the press release numbers and Wall Street spin.? ? We're going to:? Reveal our current rating for each stock Shine our AI in the dark corners of the financials:?Are they playing any accounting games? Use our reverse DCF model to reveal the truth about valuation. ?We'll have an open Q&A session throughout this live watch party so you can get your questions answered. ? Click below to register for this free event. ? Be on time because the stock requests in the chat first are most likely to get chosen.? ? This is the last Earnings Watch for this earnings season. Register at the link above and you’ll automatically get access to this last live watch party.? ? This watch party is free to attend. But, that will not be the case forever. ? Diligence matters, David Trainer, Founder & CEO https://lnkd.in/gDqRBhcR?

Excited to be syndicating research on Forbes again. Here's our latest on Amazon's stock $AMZN. https://lnkd.in/g4_HAWhZ

Want to know how low NVIDIA can go? David Trainer explains the straight-up math in this free report. Get The Honest Narrative on NVDA. See the prediction he made months ago and why it came true. https://lnkd.in/girKHY7f