ProTips is a new feature designed to help busy professionals and novice investors quickly understand the most important aspects of a company's performance, including risks, rewards, and their significance. This easy-to-use tool provides summarized and prioritized information, classifying insights, educates on financial concepts, and offers meticulously backtested and highly prioritized metrics.
Summarized and Prioritized Information
ProTips simplify complex financial data and present you with evidence-based recommendations that are prioritized by their value, not just their popularity.
Classification of Insights
ProTips uses an advanced algorithm that classifies insights as bad or good, providing you with relevant and reliable information to make informed decisions.
ProTips gives the user contextual information regarding each tip, with descriptions, peer benchmarks, and backtesting evidence that shows why this recommendation really matters.
Every metric in our product offering has been meticulously backtested to ensure that it is a market-moving metric. Our algorithm highly prioritizes metrics that we have identified as market movers.
How to Use ProTips
- Open the app and navigate to the stock or instrument you're interested in.
- Look for the ProTips section, which will display the summarized and prioritized information.
- Click on each tip to understand its meaning and see the contextual information, including backtest evidence and peer benchmarks.
- Use these insights to make informed investment decisions.
ProTips metrics explained
- Strong return over the last five years - The financial metric "Strong return over the last five years" refers to a stock or investment that has consistently provided a high return on investment (ROI) over a five-year period. In simpler terms, it means the investment has consistently grown in value and generated profits for investors during that time frame.
- Pay a significant dividend to shareholders - The financial metric "Pay a significant dividend to shareholders" refers to a company that distributes a considerable portion of its profits to its investors in the form of dividends. In simpler terms, it means that the company regularly rewards its shareholders with cash payments, reflecting its strong financial performance and commitment to sharing profits.
- Holds more cash than debt on its balance sheet - The financial metric "Holds more cash than debt on its balance sheet" refers to a company that has more cash reserves than outstanding debt obligations. In simpler terms, it means the company is in a strong financial position, as its available cash exceeds the amount it owes, which can be a sign of financial stability and lower risk for investors.
- Trading at a high price/book multiple - The financial metric "trading at a high price/book multiple" refers to a company whose stock price is significantly higher than its book value per share. In simpler terms, it means the market values the company's stock at a premium compared to the company's net assets, often indicating strong investor confidence in the company's future prospects or growth potential.
Frequently Asked Questions
Q: Are ProTips suitable for novice investors who prefer simplicity?
A: Absolutely! ProTips is designed with novice investors in mind. We do the heavy lifting for you by simplifying complex information and presenting it in a way that is easy to understand. Our goal is to keep it simple for those who need simplicity in their investment journey.
Q: How does ProTips handle bad insights versus good insights?
A: ProTips employs an advanced algorithm to classify insights as bad or good. This ensures that you receive reliable and relevant information, empowering you to make well-informed investment decisions.
Q: Can ProTips provide evidence to support its insights?
A: Yes, ProTips provides evidence because we understand that it moves markets. For example, we conduct backtests for metrics like high debt and compare them to industry peers. This evidence-based approach helps you gain valuable insights into a company's performance.
Q: How does ProTips educate users on financial concepts?
A: ProTips simplifies complex financial concepts by explaining them in simple terms. This educational feature ensures that you understand the meaning and implications behind the insights, empowering you to make confident investment decisions.
Q: Where do I see ProTips on the app?
A: You can find ProTips in the app by navigating to the stock or instrument you're interested in. The ProTips section will display the summarized and prioritized information for that specific stock or instrument.
Q: Is it only for stocks or available for other instruments as well?
A: ProTips is currently focused on stocks, but we are constantly working to expand our offering to other instruments in the future.
Q: How many types of tips do you have?
A: ProTips offers a wide range of tips, covering various aspects of a company's performance, including risks, rewards, and their significance. The number of tips available for each stock or instrument may vary based on the available data and market conditions.
Have more questions?
If you haven’t found the answers you were looking for, please go to the Investing Help Center for additional information.