Dump These 10 Blue Chips Before Earnings

by Louis Navellier | April 1, 2014 11:45 am

Dump These 10 Blue Chips Before Earnings

Last week [1]I covered five of the top blue chip stocks in terms of analyst earnings revisions for first-quarter earnings. If you had a chance to read it, I hope you’ve considered what I said about analyst earnings revisions. When push comes to shove, I consider upward revisions to be a powerful indicator of earnings surprises.

The reverse is true as well: Downward earnings revisions are not a good sign because they oftentimes precede upsetting quarterly results. Lately, analysts have been taking a more pessimistic stance on several S&P 500 companies–this has dragged down the consensus estimate for the index in the current quarter.

I don’t want anyone to be caught unawares, so I’ve been running the numbers and have isolated 10 of these “slippery slope” stocks.

Take a look:

As I mentioned, there are two easy ways to check out how your holdings are perceived by the analyst community.

The first way is to use Portfolio Grader[22], which includes a letter grade for analyst earnings revisions. If you plug Apple (AAPL[23]) into my stock screening tool[24], you’ll see that it receives a C for earnings revisions.

There are also several financial news websites which provide the latest earnings estimates for free. I personally like looking at Yahoo! Finance’s analyst estimates page for each stock. Using AAPL as our example, you can see[25] that the consensus estimate has been moving around a bit–from $10.88 per share 90 days ago to $10.14 currently.

With these tools at your disposal, there’s no reason not to stay on top of your stocks leading up to first-quarter earnings season.

With April 7 fast approaching I strongly suggest you check up on your portfolio before then.

Endnotes:
  1. Last week : http://navelliergrowth.investorplace.com/blog/archive/2014/03/five-q1-analyst-darlings-top-stocks.html#.Uzrb6aKeb08
  2. GM: http://studio-5.financialcontent.com/investplace/quote?Symbol=GM
  3. HES is a sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=HES&submit=submit&type=site
  4. GS: http://studio-5.financialcontent.com/investplace/quote?Symbol=GS
  5. GS is a sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=gs&submit=submit&type=site
  6. HES: http://studio-5.financialcontent.com/investplace/quote?Symbol=HES
  7. GM is a strong sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=GM
  8. IBM: http://studio-5.financialcontent.com/investplace/quote?Symbol=IBM
  9. IBM is a sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=IBM
  10. MAT: http://studio-5.financialcontent.com/investplace/quote?Symbol=MAT
  11. MAT is a sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=MAT
  12. NEM: http://studio-5.financialcontent.com/investplace/quote?Symbol=NEM
  13. NEM is a strong sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=nem
  14. JWN: http://studio-5.financialcontent.com/investplace/quote?Symbol=JWN
  15. JWN is a sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=JWN
  16. TGT: http://studio-5.financialcontent.com/investplace/quote?Symbol=TGT
  17. TGT is a strong sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=TGT
  18. TSO: http://studio-5.financialcontent.com/investplace/quote?Symbol=TSO
  19. TSO is a sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=TSO
  20. WY: http://studio-5.financialcontent.com/investplace/quote?Symbol=WY
  21. WY is a strong sell: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?q=wy&submit=submit&type=site
  22. Portfolio Grader: http://navelliergrowth.investorplace.com/portfolio-grader/
  23. AAPL: http://studio-5.financialcontent.com/investplace/quote?Symbol=AAPL
  24. into my stock screening tool: http://navelliergrowth.investorplace.com/portfolio-grader/stock-report.html?t=AAPL
  25. you can see: http://finance.yahoo.com/q/ae?s=AAPL+Analyst+Estimates

Source URL: http://investorplace.com/2014/04/blue-chips-stocks-to-sell-gm-gs-hes/
Short URL: http://invstplc.com/1e8FKkt