There are few things that can light a fire under a stock like a positive earnings surprise. When a company beats expectations it sends a powerful message to the Street that business is good.
For example, Apple Inc. (NASDAQ:AAPL) jumped almost 10% in one day on January 31 after reporting record first-quarter results and a 5% positive earnings surprise.
However, it is difficult to predict which stocks will beat and which will disappoint. It’s kind of like throwing darts in the dark.
Today, I am going to reveal a better way to profit from an earnings surprise with one of Wall Street’s best kept secrets. Even better, this is the perfect time to capitalize. Let me explain…
First Quarter Earnings Season Is About To Kick Off
This is a pivotal quarter for S&P 500 earnings. After being trapped in an earnings recession for a year and a half, S&P 500 earnings are finally returning to sustained growth.
First-quarter earnings are expected to grow 6.5% and then steadily accelerate from there.
Take a look below.
I am expecting the S&P 500’s return to earnings growth to fuel some very nice positive earnings surprises this season.
But don’t worry — as I said before, you don’t have to predict which stocks will beat the Street to profit.
Let me show you a better way.