Earnings season is upon us and you can bet that it is going to spur some big swings in the market. In particular, the first few weeks of earnings season are going to be crucial. Each and every day, upwards of 50 companies will report operating earnings.
And I can hardly wait for things to really kick off. As I mentioned last week, rising Treasury yields made the market very nervous, sparking a major sell-off earlier this month. It’s my hope that third-quarter earnings season will spark a flight to quality.
After all, analysts are predicting that the S&P 500 will post 19.2% annual earnings growth and 7.3% annual sales growth, according to FactSet. These are strong estimates.
The other thing about earnings season is that it’s like short seller repellant. Professional short sellers work to scare investors out of the market by preying on their fears and spreading unfounded rumors. They disappear during earnings season because they know that they’d get buried when strong sales and earnings are reported.
Those who subscribe to my premium newsletters already know my top picks for earnings season. My Buy Lists are jam packed with the fundamentally strongest companies that money can buy. However, if you’re not a current subscriber, or if you’re looking to add to your holdings this earnings season, I have something special for you today. So, I expect that earnings season will help to settle things down in the coming weeks.
I’ve run my Portfolio Grader stock screener on over 300 of Wall Street’s hottest names. Each one of these companies is scheduled to release their earnings results over the next few weeks. Some are expected to grow sales and earnings, some aren’t. Some are well regarded by analysts, others aren’t. Fortunately, my Portfolio Grader tool makes it easy to tell the difference.
So in this week’s Market 360 report, I’ve prepared a master list of the stocks you should keep your eye on over the next few weeks. Whether they’re a buy, sell or hold in my book, I expect that there will be some big movements from this list. Take a close look and see how your current holdings stack up.