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3 Trends I Want to See This Earnings Season

Here's hoping we can reboot the market after earnings

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Revenues that beat estimates

Bag_Money_Profits__iStock_000002768906XSmall[1]A good earnings report is not just about profits. It’s about the top line, too.

In that vein, the numbers in the last two quarters have not been that great. Company after company seemed to miss on the revenue expectations. That’s not a healthy state of things.

Sure, you can manage earnings, but if you are missing sales estimates, that says much about the real operations of a company. While there can be some manipulation with respect to revenues, a sale is just a sale. There are no gimmicks. What I am looking for then this year is more and more companies meeting or beating estimates on the top line. To the extent we see an acceleration of sales, we are likely to see an reacceleration of the bull market.

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