Unlock Alpha at Earnings Season with AI-Generated Fundamental Forecasts
Equity markets reflect fundamentals in the long run; therefore, accurate fundamental forecasts can provide investors with a significant edge.
Nomad Data has partnered with a new data provider that is revolutionizing earnings forecasting through AI-generated fundamental forecasts powered by proprietary financial AI machine learning models.
Our partner’s data helps users navigate the complexities of fundamentals forecasting, addressing challenges posed by increasingly interdependent companies with extensive supply chains, global operations, and diversified end markets. Using a scientific approach, their machines model thousands of data points from over 1,400 publicly available, high-quality sources, including SEC filings, industry metrics, government agencies, and industry trade associations. Furthermore, their models dissect the intricate relationships among customers, partners, suppliers, industries, and economies, autonomously uncovering key drivers from ecosystem interconnections.
Our new partner avoids sample or panel data, which can suffer from sampling demographic biases, extrapolation, and limited geographic scope. Their dynamic multidimensional models leverage a broad and deep set of factual data to deliver more accurate, comprehensive, and unbiased forecasts of key fundamentals for over 1,300 companies.
This partner stands out from other data providers with an asset management subsidiary that incorporates these fundamental forecasts into its sub-strategies. Based in Silicon Valley, outside the Wall Street bubble, they bring a fresh perspective. Their diverse team includes mathematicians, data scientists, industry experts, economists, and engineers—outsiders to finance—who provide innovative and unique solutions.
Why it matters
Fundamentals serve as the cornerstone of the equity market, reflected in asset prices over time. As such, accurate fundamental forecasts can provide investors with a significant edge. Solely trading on the earnings date is effectively a coin toss – 51% of stocks rose the next day over the past ten quarters. The stakes? A staggering $2.2 trillion in market cap exchanging hands. Their fundamental forecasts are generated daily, with point-in-time figures dating back to 2016, allowing investors to track the evolution and stay well ahead of sell side updates.
With Nomad Data you can focus on specifying the use case you’re trying to solve for, and we’ll connect you with this industry leader if their data can inform on it. Some sample use cases identified for this data include:
- Continuously assess predicted fundamentals to evaluate portfolio health.
- Aggregate view of industry trends, sector performance, and market dynamics.
- Allot capital to companies or sectors with strong growth potential.
- Anticipate performance shifts in companies or sectors to manage exposure.
- Align positioning with forecasted trends to capture growth and avoid declines.
To be connected with this industry leader for your data needs, please log in to Nomad Data and share your specific use case.
