Beyond the Balance Sheet: Why Patents are the Next Frontier in Stock Analysis
Patents and the Stock Market: An Unconventional Guide In the world of finance, we're all trained to look at the numbers. We pour over balance sheets, income statements, and cash flow reports, trying to make sense of a company's past performance to predict its future. But what if there's a powerful, forward-looking indicator hiding in plain sight? Welcome to the world of alternative data , where savvy investors are looking beyond traditional financial metrics to uncover a company's true value. One of the most compelling and underutilized sources of this data is a company's patent portfolio . It's a common and a smart idea to use patent data for financial analysis. Here's why this strategy is so much more than a futile attempt. Patents are a Forward-Looking Indicator Think about it: a quarterly earnings report tells you what a company has already done. A new patent filing, on the other hand, gives you a sneak peek into what the company is working on right now....