AI Earnings Prediction

Screening Filters

1. Market Cap: 500M–20B USD

   • Purpose: Focus on mid-cap to smaller large-cap companies.
   • Rationale:
     • BBIO (BridgeBio Pharma) is a mid-cap biotech, so setting a range of 500M–20B ensures the screener universe actually includes BBIO.
     • This range also captures companies that typically have:
       • Active analyst coverage and thus available earnings estimates.
       • Similar risk/return and growth profiles to BBIO, making any peer comparisons around earnings more meaningful.

2. Industry: Biotechnology & Medical Research, Pharmaceuticals

   • Purpose: Restrict the universe to companies with similar business models and earnings dynamics as BBIO.
   • Rationale:
     • BBIO operates in biotech/pharma, where earnings are heavily driven by R&D, clinical trial progress, and drug pipelines rather than stable cash flows.
     • Limiting to these industries:
       • Ensures BBIO is properly captured in the correct sector.
       • Allows comparison of BBIO’s earnings expectations against relevant peers facing similar regulatory, clinical, and patent-related factors.

3. Exchange: XNYS (NYSE), XNAS (Nasdaq)

   • Purpose: Include only major U.S. exchanges.
   • Rationale:
     • BBIO trades on Nasdaq, so including XNAS guarantees coverage of the ticker.
     • NYSE and Nasdaq listings generally have better data quality and more analyst coverage, which is crucial for reliable earnings forecasts.
     • Excluding OTC or small foreign exchanges filters out less-followed names where earnings estimates may be sparse or unreliable.

Why Results Match:

• The filters define a universe where BBIO naturally belongs: a U.S.-listed mid-cap biotech/pharma stock.
• That universe is appropriate for:
  • Locating BBIO itself to pull its specific earnings predictions.
  • Optionally comparing those predictions to close peers with similar size and industry characteristics, giving context to BBIO’s earnings outlook.