Correia Investment Solutions

🤖 About the AI Predictive Model

The results displayed below are generated by a proprietary AI model built on the principles of fundamental analysis, trained and evaluated on quarterly financial data from S&P 500 companies. The model incorporates a comprehensive set of financial variables including net income, sales and revenue, gross and net margins, return on assets (ROA), return on equity (ROE), capital expenditures, and research and development investments — along with the three-year rate of change for each of these metrics to capture meaningful trends over time. Valuation multiples such as price-to-earnings (PE) and price-to-sales (PS) ratios are also factored in, alongside industry-level rankings and cross-industry comparisons to contextualize each company's relative financial standing. In addition to these fundamental inputs, the model employs a Cash Flow to Equity (FCFE) valuation framework combined with Monte Carlo simulations to generate probabilistic estimates of future price levels, accounting for uncertainty across a range of possible outcomes. Two forward-looking price targets are produced for each security: Horizon 1 (H1), which looks approximately 3 months ahead, and Horizon 2 (H2), which extends to roughly 6 months — both measured from an entry point that falls approximately 2 months after the official close of each quarterly reporting period. The charts below visualize how closely the model's predictions aligned with actual realized prices in historical periods, and include a confidence band representing one standard deviation around the predicted values to illustrate the range of expected outcomes. For the most recent quarters, the charts also project what the model anticipates for future price levels, offering a forward-looking perspective grounded in rigorous quantitative analysis.