Understanding macro trends with sentiment analysis

Jan Svenda


September 16, 2019

Big Ben in England.
Big Ben in England.

Understanding sentiment within earnings transcripts can give you a good grasp of how current events are impacting different sectors. With the right sentiment analysis tools, you can quickly understand what industries might be at risk, what industries have potential, and how management is responding.

Instead of painstakingly combing through hundreds of transcripts to identify relevant insights, you can use AlphaSense to get a good overview in a fraction of the time.

Comparing Sentiment across industries to see the big picture

Take Brexit, for example. It’s an ongoing topic that continues to impact different industries in different ways.

When trying to get a broad overview of the impact of a trend on the industry within AlphaSense, create a filtered view focusing on the industry of choice, and sort by Sentiment score.

With a Sentiment score, you can immediately track overall sentiment across different companies that mentioned “Brexit” in earnings calls over time.

Related: How Equity Analysts Use Sentiment For Earnings Research

One can then easily jump into the transcripts for a closer look, or sort to identify which companies are more positive or negative than others.

Comparing these trends across industries can show you which sector might be more exposed than others. The healthcare industry, for example, expressed concern over changing drug clearance procedures. An orderly Brexit could mean slower order flow as the current stocking of products will not be necessary.

In the end, however, one overarching comment on Brexit was that it increases uncertainty. Even if industries are not going to be impacted now, they are certainly wary of further complications.

Trained to understand the nuances of financial language, AlphaSense Sentiment is the smartest sentiment analysis capability for financial language on the market. Want to see more? Get in touch for a personalized demo now.  

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Jan Svenda

Jan Svenda is an independent equity analyst focused on the U.S. Small/Micro-cap space. He searches for long ideas trading around Net Current Assets Value (NCAV) and for short ideas which showcase a significant potential for aggressive or manipulative accounting.

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