The first of a regular feature, and celebrating the official close of the first quarter reporting season here in the US, here are the Top 10 Biggest DATA Score Changes for the First Quarter of 2023 for the S&P 500, 400, and 600. In other words, which companies have become more deceptive in the past year? And which companies have become more truthful in the past year?
Recall that the primary output of Deception And Truth Analysis is its DATA Score. DATA Scores range between -100% and +100% with any negative score indicating a level of deceptiveness and any positive score indicating a level of truthfulness. The mean DATA Score from 2008 thru 2022 was 6.02% and the standard deviation was 13.88%. DATA Scores are roughly normally distributed and extreme scores are certainly more difficult to attain.
Referring D.A.T.A.’s stock market validation work, both deceptive and truthful DATA Scores are predictive of future stock price performance. Specifically, deceptive/negative DATA Scores are generally predictive of future stock price underperformance. While truthful/positive DATA Scores are generally predictive of future stock price overperformance.
Interpretation
Interpreting the tables above, the thoughtful investor should look at both the current DATA Score, as well as the change in DATA Score, year over year for a deeper understanding of the underlying behavioral dynamics at the companies list. For example, a company like Welltower may still maintain a strongly truthful DATA Score of 30.86%, but still have seen a very large move in the direction of deceptiveness of -14.45%. Investors would want to understand exactly what has changed at Welltower in the last year.
For that deep dive analysis you want to be a D.A.T.A. Client subscribed to our premium product, DATAREDline, where we show you the running narrative of deceptiveness and truthfulness in a document so that you can drill down into he issues a company is being both deceptive and truthful about. Here is what it looks like for Welltower:
If you liked this post then consider subscribing, and better yet, why not contact us so that we can show you how to use Deception And Truth Analysis to rapidly surface investible insights and serve as a force multiplier for your teams. See you next quarter…and you’re welcome :).
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