Our approach

To value any financial security, it is critical to determine the true, underlying earnings power of that company. Many data service providers and Wall Street strategists try to do this. However, we have found none that has tirelessly scrubbed the numbers over the past 20 years the way we do. Our goal is to first determine the sustainable earnings figures by eliminating non-recurring gains and losses from a company's operating business. We also look very closely at accounting assumptions companies use to determine the quality of those underlying earnings. We do this because we believe that whether you are an executive of a Fortune 500 company or a six year old running a lemonade stand, the value of any business, all else equal, rises and falls with its profits.

• For public financial markets though, absolute levels of earnings and earnings estimate changes do not matter.
• Too many investment professionals listen to data service providers churning this information out and then invest accordingly, often leading to inferior investment results.
• The Earnings Scout knows it’s all about the delta, i.e. the rate of change to those earnings trends.

Our diligent research analysis culminates in our major deliverables including our Daily Commentaries, Weekly Earnings Scouting Report, Monthly Investment Playbook and our institutional database where active managers can track the sustainable earnings momentum for their individual holdings or quickly discover the best and worst earnings trends in each sector and industry that have not yet been fully accounted for by the market.