RESEARCH:
Earnings Call Sentiment for Sector Selection

Alexandria's AI and language models have been trained exclusively on financial content, which give more targeted classification than more generic models.

We use Alexandria's financial AI to read earnings calls for stocks with the purpose of building sector rankings based on the sentiment of the underlying companies.

Earnings call sentiment can be an effective way to capture sector outperformance, we find:

• Selecting the most positive sector each month outperforms the S&P by 6.65% annually
• Overweighting positive sectors and underweighting negative sectors outperforms the S&P 500 Index by 2.1% annually