Why this rare stock signal has investors paying attention.

30 Mar 2026 · 1 min

Watch on YouTube

0:41

A company's economic earnings are outpacing its GAAP earnings, a rare divergence that started showing up in 2025. Most firms do the opposite, inflating GAAP numbers while economic earnings lag. This gap suggests genuine cash generation that standard accounting misses.

Chapters

Now, with this stock pick, we found a company with economic earnings greater than GAAP earnings. Here's the distortion we saw. And what we love here is this is a very recent emergence. Just here in 2025, we saw a significant divergence— accounting earnings going down, economic earnings going up. This does not happen very often because, as we point out, companies are doing everything they can to jack this GAAP earnings number up. So when it's down and economic earnings are up, that's really rare. And I love when I see stuff like this. This is amazing. Usually it's the other way around. GAAP earnings are going up and economic earnings are going down. So this gets us excited.