How to use consumer data to predict stock market winners: The power of Signals

Emily Cresswell | 4 min read | Oct 09, 2024

Powered by real-time consumer data from 25 million credit and debit cards and $70bn in transactional spend, we give investors like you a distinct edge by revealing spending patterns that directly influence stock movements.

Why Real-Time Consumer Spending Analytics Give Investors an Edge

When it comes to investing, timing is everything. But what if you could get an early look at trends that impact the stocks you care about before the rest of the market catches on? Powered by real-time consumer spending analytics from 25 million credit and debit cards, Signals gives investors like you a distinct edge by revealing patterns that directly influence stock movements, offering precise financial predictions.

1. Identify Leading Indicators with Consumer Spending Analytics

Consumer behavior is often the first sign of a company’s success or struggle. For example, an uptick in consumer spending at a particular retailer could signal strong quarterly earnings, pushing stock prices higher. Signals' dashboard allows you to track spending trends across hundreds of tickers, giving you early insight into potential investment opportunities.

Take Delta Air Lines as an example. On October 3, 2024, we tracked Delta at a C-Score of -77.83, indicating a bearish outlook. Our investment insights revealed key factors at play:

• Travel spending is down across the board as economic slowdowns lead business travellers to reduce costs, switching to home offices and local workplace setups.
• Rate cuts have shifted consumer spending toward housing and home furnishings.
• Discount airlines are experiencing a rise in spending month-over-month.
• Geopolitical tensions are increasing.

Just a week later, on October 10, 2024, Delta Air Lines reported that earnings missed by $0.02 and revenue fell short of estimates. Investors who leveraged our real-time consumer data had a heads-up, allowing them to make timely decisions before the market fully reacted.

2. Compare Industry Performance for Strategic Insights

Investing isn’t just about individual companies—industries and sectors often move together. With Signals, you can compare how different sectors are performing based on consumer spending trends. This can help you adjust your portfolio, ensuring that you’re positioned to take advantage of growth areas.

For example, if consumer spending in the tech sector is surging while retail spending is slowing, you can strategically shift your investments. Signals provides real-time investment insights that reveal the bigger picture, allowing you to make data-driven decisions that align with market trends.

3. Spot Emerging Trends Before They Hit the Headlines

One of the most powerful aspects of Signals is the ability to identify emerging trends before they make headlines. By tracking real-time consumer transactions, our platform uncovers subtle but significant shifts that can have a big impact on the market.

Imagine noticing an increase in travel-related spending—more people booking flights and hotels. Armed with this data, you could invest in travel stocks before the broader market reacts to the trend. Investment insights like these enable you to stay ahead of the curve and position yourself for success.

4. Stay Ahead of Quarterly Earnings with Predictive Financial Insights

Earnings season can be one of the most volatile periods for any stock. But predicting outcomes is no longer as difficult when you use real-time consumer data. With Signals, you can analyze spending patterns to get a clearer picture of a company's likely performance before they release their numbers.

For instance, if you see a steady rise in consumer spending for a specific brand, it’s a sign that they might be set for a strong earnings report. This early insight allows you to adjust your positions or capitalize on short-term gains before the market reacts.

Ready to Gain an Edge?

Signals delivers the kind of real-time consumer insights hedge funds pay top dollar for, now accessible to individual investors. The stock market may be unpredictable, but consumer spending analytics provide a powerful tool to make smarter, faster decisions. Don’t wait—join Signals today and start using precise financial predictions to stay ahead of the market.