New Constructs Fundamental Data Proven Superior by Paper Forthcoming in the Journal of Financial Economics

January 26, 2021 5:00 AM EST

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NASHVILLE, Tenn., Jan. 26, 2021 /PRNewswire/ -- New Constructs (NC), the leading provider of insights into the fundamentals and valuation of private and public businesses, announced that The Journal of Financial Economics accepted for publication, Core Earnings: New Data & Evidence, a paper that features the superiority of its novel proprietary fundamental data.

This paper proves:

  1. There is no rival for New Constructs' materially superior fundamental data and earnings models.
  2. For the first time ever, New Constructs' "novel database" of unusual gains/losses enables investors to adjust reported or consensus metrics and know the truth about corporate profitability at scale.
  3. New Constructs' superior measures of Core Earnings and Earnings Distortion materially improve stock picking and forecasting of traditional profitability metrics.

"For the first time in over 40 years, investors have a new, better source for fundamental data, one that is proven materially superior to all other datasets," said David Trainer, CEO of New Constructs.

The authors, professors from Harvard Business School (Charles Wang & Ethan Rouen) and MIT Sloan (Eric So), invested years of research into the paper. After it was rigorously reviewed by experts, The Journal of Financial Economics, a top-three peer-reviewed journal in the world, selected it for publication.

"We were thrilled to take a first step in better understanding the nuances of earnings-related disclosures embedded in financial statements using New Constructs' novel granular data," said Charles Wang.

The paper also highlights the difficulty in collecting critical data from the footnotes and the MD&A. It underscores the unrivaled efficacy of New Constructs' Robo-Analyst technology for intelligently analyzing complex financial statements and disclosures at unprecedented scale.

"The implications of these findings are potentially far-reaching for investors and researchers." - page 35 in the paper.

Now, all investors, not just Wall Street insiders, can properly assess corporate profits after excluding the unusual gains and losses that companies bury in footnotes.

Harvard Business School and MIT Sloan are not the only institutions to write papers on the superiority of New Constructs' data and research. Find more papers here.

About New ConstructsNew Constructs provides insights into the fundamentals and valuation of private and public businesses. Combining human expertise with natural language processing (NLP), machine learning (ML) and artificial intelligence (AI) technologies, the firms shines a light in the dark corners (e.g. footnotes) of hundreds of thousands of corporate financial filings to reveal critical details that drive uniquely comprehensive and independent debt and equity investment ratings, valuation models and research tools.

New Constructs has been featured in national business news publications including CNBC, Wall Street Journal, Barron's, Forbes, Seeking Alpha, Benzinga and more. Other strategic partnerships with IEX Cloud, Apex Clearing, TD Ameritrade, Wisdom Tree, Refinitiv/Thomson Reuters, Interactive Brokers and EY enable New Constructs to deliver data, models, ratings and research on over 10,000 stocks, bonds, ETFs and mutual funds to millions of investors, financial advisors and corporate executives.

Media Contact:Scott GammStrategy Voice Associates, LLCscott@strategyvoiceassociates.com

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