Consumer Discretionary

Report by LightStream Research

Revenue growth has underperformed consensus expectations in all quarters since management decided to cut costs to ensure its long-term survival. The share price sank ~20% leading up to 4Q22 earnings and has dropped more than 10% since then to $12.86 per ADS. However, the valuation remains expensive compared to regional peers - CPNG still trades at an 80% premium to the second most expensive e-commerce name in the region. With the share price breaking the trend line, Oshadhi Kumarasiri sees the stock falling below last year’s bottom of $8.98 per ADS.

Report by New Constructs

The Journal of Financial Economics (see here) proves how New Constructs’ Robo-Analyst technology overcomes material shortcomings in legacy data firms to provide superior fundamental data, earnings models, and research. During the Real Earnings Season (Feb 14-Mar 18), the Robo-Analyst found 38,314 Core Earnings, balance sheet, and valuation adjustments with a combined value of $18.9trn.

American Airlines (AAL) - Losses still bigger than many realise. Earnings Distortions totalled $3.5bn (173% of GAAP earnings).
GlaxoSmithKline (GSK) - Growing Profits + Cheap Valuation = Very Attractive Rating. Core Earnings of $6.9bn > GAAP earnings of $4.4bn.
International Flavors & Fragrances - Why understated profits aren’t always a good investment.

In addition, material weaknesses in internal controls were identified at several stocks including CBRE Group, Coupang and SeaWorld.