Current Potential Earnings Manipulators Based on Beneish M-Score

In my previous article, I described the Beneish M-Score. The model estimates the probability of earnings manipulation based on eight fundamental factors. Beneish calculated that an M-Score greater than -1.49 would indicate a high likelihood of earnings manipulation and that only 7.6% on nonmanipulators would be incorrectly identified at this threshold.

Based on Portfolio123 data here is the current list of publicly traded companies over $5 billion in market capitalization that are highly likely to be potential earnings manipulators:

NVIDIA Corporation (NVDA): -1.08
Shopify Inc (SHOP): -1.03
Zoom Video Communications Inc (ZM): -1.19
Advanced Micro Devices Inc (AMD): -1.12
Roku Inc (ROKU): 1.38
Align Technology Inc (ALGN): 0.85
lululemon athletica inc (LULU): -0.11
Chipotle Mexican Grill Inc (CMG): -0.45
DexCom Inc (DXCM): -0.07
Southwest Airlines Co. (LUV): -0.42
Plug Power Inc (PLUG): 0.15
EXACT Sciences Corp (EXAS): 4.93
Carnival Corporation & Plc (CCL): -1.26
Carvana Co (CVNA): -0.9
Horizon Therapeutics Public Ltd Co (HZNP): -1.35
Bio-Rad Laboratories Inc (BIO): -0.94
Alnylam Pharmaceuticals Inc (ALNY): 3.02
Wheaton Precious Metals Corp (WPM): -1.38
Icahn Enterprises LP (IEP): 2.77
Caesars Entertainment Inc (CZR): 4.4
United Airlines Holdings Inc (UAL): -1.19
NortonLifeLock Inc (NLOK): -0.73
Cable One Inc (CABO): -1.39
Trex Co Inc (TREX): -0.91
Vail Resorts Inc. (MTN): -1.08
Essential Utilities Inc (WTRG): -1.43
Beyond Meat Inc (BYND): -0.13
American Airlines Group Inc (AAL): -1.11
Formula One Group – The Liberty Media Group (FWONK): -1.23
MicroStrategy Inc (MSTR): 6.83
Quidel Corp (QDEL): -0.16
Lightspeed POS Inc (LSPD): -1.2
Churchill Downs Inc (CHDN): -1.01
Freshpet Inc (FRPT): -1.01
Magnite Inc (MGNI): -0.37
Cleveland-Cliffs Inc (CLF): -0.21
Norwegian Cruise Line Holdings Ltd (NCLH): -1.35

If you would like to look at smaller companies that might also have high M-Scores, consider a trial of Portfolio123 in order to run the screen yourself. Feel free to discuss this list in the comments section below.

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