Investing.com - Executives are using corporate earnings presentations to show increasing commitment to Artificial Intelligence in their corporate strategies. This is the case for Meta Platforms (NASDAQ:META), which reported results yesterday, and is also expected to be the focus of Alphabet's (NASDAQ:GOOGL) earnings announcement tonight.
AI is also demonstrating a pivotal role in new investment strategies by expanding a world of diverse possibilities and strategies in the investment industry. AI has been shown to open up a world of possibilities in the investment industry.
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In this scenario, the InvestingPro professional platform features ProPicks strategies, a combination of Artificial Intelligence (AI) and expert human analysis to highlight stocks with potential to outperform market benchmarks.
Source: InvestingPro
InvestingPro's proprietary AI model analyses historical financial data, with the intention of categorising and rating different stocks and their historical performance. The AI model learns to identify different financial parameters and their correlation to overall stock performance over the years and assign relative weights to the different financial parameters.
Based on the results of the analysis, our AI model ranks each stock by assigning it one of the following labels: Underperform, Neutral Performer or Outperformer, and thus attempts to identify stocks that may have historically outperformed market benchmarks over certain time periods.
Over 50 financial metrics
The historical dataset includes over 25 years of financial data and over 50 financial metrics for thousands of companies across a variety of industries. This extensive dataset is necessary to increase the accuracy of the weighting assigned to each financial metric, which contributes to a more rigorous analysis of stock performance. This also serves to mitigate any bias that may occur, as explained below.
Once the AI model has assigned a rating to historical stocks, we can apply some constraints and selection criteria to the data, for example, trading frequency, sector, industry, trading region, whether they are included in a stock index, market capitalisation or liquidity.
Top-rated stocks are grouped based on the criteria that Investing.com considers most relevant and useful for users, such as the strongest stocks on S&P 500, the best-rated technology stocks, etc.
In addition, through this criteria process, we also eliminate stocks that might be irrelevant to the average investor, such as low-cost stocks. Each of these groups constitutes a different ProPicks strategy that will be available to you through Investing.com. This step serves to make the ProPicks strategies robust, relevant, and pragmatically applicable in real-world trading contexts.
Each of the ProPicks strategies is compared to historical data (backtesting) to review and study the historical performance of the strategy.
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With it you will get:
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- ProTips: digestible information to simplify a lot of complex financial data into a few words.
- Advanced Stock Finder: Search for the best stocks based on your expectations, taking into account hundreds of financial metrics.
- Historical financial data for thousands of stocks: So fundamental analysis professionals can drill down into all the details themselves.
- And many other services, not to mention those we plan to add in the near future.
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