True Fundamentals

Check out our earnings distortion data at

[True Fundamentals @TrueFundamental]

1/ We built an earnings distortion score trading strategy, following @NewConstructs methodology for calculating each company earning distortion score.

With a CAGR of 38% and a 14% 1Y return, it demonstrates significant potential for alpha.

See more below 👇

[True Fundamentals @TrueFundamental]

Lucid Motors missed on Q2 earnings earlier this week yet the stock has risen as much as 12% since.

This could be due to the shrinking gap between their net income & core earnings, as reflected by an Earnings Distortion Score of 1 (lowest distortion).

Their previous score was 3.

[New Constructs @NewConstructs]

Great work showing how to get "novel alpha" from our proprietary #EarningsDistortion as proven in the @J_Fin_Economics by @charles_cy_wang @ethanrouen @professorso

[True Fundamentals @TrueFundamental]

7/ If you enjoyed check out https://t.co/W8OXWg1GTw to learn about individual positions of this strategy and see the risk-adjusted metrics.

Follow me @TrueFundamental for more:

[True Fundamentals @TrueFundamental]

1/ We built an earnings distortion score trading strategy, following @NewConstructs methodology for calculating each company earning distortion score.

With a CAGR of 38% and a 14% 1Y return, it demonstrates significant potential for alpha.

See more below 👇

[True Fundamentals @TrueFundamental]

1/ We built an earnings distortion score trading strategy, following @NewConstructs methodology for calculating each company earning distortion score.

With a CAGR of 38% and a 14% 1Y return, it demonstrates significant potential for alpha.

See more below 👇

[True Fundamentals @TrueFundamental]

6/ For example, positions taken during the peak of an earnings season will generally have a lower allocation than positions at the start of an earnings season.

[True Fundamentals @TrueFundamental]

8/ Check out https://t.co/W8OXWg1GTw to see companies' earnings distortion scores.

Follow me @TrueFundamental for more:

[True Fundamentals @TrueFundamental]

1/ Let's dive into the correlation between a company's earnings distortion score and its stock price movement.

Our analysis is based on data from https://t.co/4T7jO4khrH, and focuses on companies' daily excess returns when the earnings distortion score is low 👇

[True Fundamentals @TrueFundamental]

1/ Let's dive into the correlation between a company's earnings distortion score and its stock price movement.

Our analysis is based on data from https://t.co/4T7jO4khrH, and focuses on companies' daily excess returns when the earnings distortion score is low 👇

[True Fundamentals @TrueFundamental]

7/ These examples underscore the potential value of considering earnings distortion scores when evaluating investment opportunities.

Companies with lower scores, indicating less earnings manipulation, tend to yield higher returns.

[True Fundamentals @TrueFundamental]

8/ Our goal with @TrueFundamental is to solve this problem by bringing a standardized framework for earnings adjustments to retail investors.

Visit https://t.co/4WAc4CTwGG to learn more, and start tapping into our data.

[True Fundamentals @TrueFundamental]

1/ Do managers manipulate alternative earnings measures to surpass analyst forecasts?

A deep dive into a study from the Journal of Financial Economics that explores the strategic use of non-GAAP earnings by managers to meet or exceed analyst forecasts👇

[True Fundamentals @TrueFundamental]

7/ These findings highlight the need for caution when relying on management's non-GAAP earnings, as they can be subject to manipulation.

Accurately adjusting earnings is important, and using an unbiased source can give you a huge leg-up when evaluating a company's profitability.