Made in the USA, chosen by AI-based equity research
Trading Platforms: Increase engagement by giving users tools for independent fundamental analysis
Today, 4th of July, is Independence Day in the USA. This is a reason to celebrate, but also to contemplate on what it means to be independent - for a country as well as for its people. As we are a financial company, we’ll talk about what we know best: economic and financial independence.
Strong companies strengthen the economy and shareholders’ returns
Clearly no country can be truly independent without a well functioning economy - and a strong economy needs competitive, resilient, profitable and effective companies. The US has a great number of these companies, which make the American economy stronger by bullet-proofing their own balance sheets and turning in profits. Many of these companies are not on the analysts’ watch list so that they aren’t necessarily a household name with the retail investors.
It is also important to remember that people strive for independence in every aspect of their lives; and that includes, of course, their investment decisions. We live in a world of information abundance, where investors are being constantly showered with contradicting figures, graphs and advice. In this confused mass of information, it seems to be that investors’ main effort is to find advice that makes some sense; they have almost no way to check the credibility of this advice except in retrospect.
Trading Platforms: Help your users gain research independence
Trading Platforms have a chance to weigh in and assist their users gain investing independence. If they gain hands-on knowledge and get access to user-friendly research tools, they don’t need to waste their time on talking heads and mass-producers of charts, but they can perform the fundamental analysis for themselves. Deshe Analytics’ AI research tools, integrated into your platform, will help traders be truly independent in their investment decisions.
When investing in a market downturn, it’s important to determine how productively a company manages its assets and liabilities to maximize profits, in other words - how efficiently shareholder money is put to work. Doing the fundamental analysis will certainly help traders find which companies are worthy of investment.
But, of course, not all traders have time or and knowledge needed to extract the information from corporate financial statements, let alone analyze it properly. We can help your users close the information gap and reach research-based investment decisions, minimally affected by sentiment, beliefs or bias - since the AI analyst is as objective as it is possible.
Profits “Made in the USA”
As an example of the possibilities that can brought to your users by employing our AI research tools, on this Independence day we would like to show you some of the most financially effective American companies - that are probably flying under your traders’ radar as they have less (human) analyst coverage than your usual mega-caps, and rarely make any headlines, if at all.
So on July fourth, we bring you these four American companies whose stocks are rated STRONG BUY by our AI analyst, based on their balance sheets, income statements and other fundamental factors:
The company has been providing assisted income tax return preparation and DIY tax return preparation services and products to the general public since 1955. With a market capitalization of USD 5.9B, it’s considered Mid-cap. The analyst coverage on the stock is quite low - even though HRB has rallied 50.5% YTD! The positive momentum is explainable by HRB’s sound financial metrics, such as EBITDA Margin of 30.2%, outstanding ROE, ROA and Return on Capital. Even after the rally, the stock’s PE ratio is just 13.5 vs Diversified Consumer Services industry’s average of 19.4. H&R Block pays dividends of 2.9%.
DXC is an American multinational information technology services and consulting company, incorporated in 2017; its market cap is USD 6.9B. Company's strong Q1 2022 results conveyed remarkable strength in terms of value, growth, and income factors. The company became profitable in the past year; debt metrics improved remarkably, ROE increased significantly and EBITDA Margin rose to a solid 18.8%; Return on Capital is also higher than a year ago. DXC’s PE ratio stands at a low 12.7 versus IT industry average of 28.3.
UTHR is a biotechnology company that engages in the development of products to address the needs of patients with chronic and life-threatening diseases, it was founded in 1996 and its current market cap is USD 10.8B. It’s the only Biotech in the US (above USD 1B market cap) to receive a STRONG BUY rating from our AI, based on its remarkable fundamentals. Its Q1 2022 report was inspiring on many levels: UTHR beat EPS estimates by a large margin while its EBITDA Margin rose to 54.2%. The company’s ROA is higher than at its peers, it has reasonable ROE and medium-high (and growing) Return on Capital. Outstanding debt ratios with both short- and long-term liabilities well covered by assets are key to stability. UTHR stock has risen 13% YTD, but it's still fairly valued at a PE of 16.5 vs Biotech industry average of 15.8.
Carrier provides heating, ventilating, and air conditioning, refrigeration, fire, security, and building automation technologies worldwide; it has been around since 1915 and has a market capitalization of USD 30.5B. The company’s Q1 2022 financial report release provided many positive indicators, such as net income and EPS growth, strong cash flow metrics etc. CARR’s EBITDA Margin is a reasonable 14.1%. Return on Equity and Return on Assets are very high; although liabilities aren’t low, debt is well covered by operating cash flow. CARR pays a dividend of 1.67%. The company’s stock declined 31.5% YTD, with the PE ratio falling to 11.9 vs. US Building Products industry average of 16.1.