Well folks, the fourth-quarter earnings season is about a week a way, with the Big Banks – JPMorgan Chase (JPM), Bank of America (BAC), Wells Fargo (WFC) and Citigroup (C) – up to bat first with their latest quarterly results next Friday.
Currently, the analyst community expects the banking giants’ earnings to decline across the board. But the reality is it’s going to be a tough quarter for just about everyone. FactSet currently estimates that the S&P 500 will also report an earnings decline of 2.8% in the fourth quarter.
With that in mind, you need to be looking at companies with superior fundamentals, i.e., strong earnings and sales growth, that are also experiencing persistent institutional buying pressure. And with earnings season right around the corner, it’s especially important you position your portfolio properly now.
So, after taking a close look at the latest institutional buying pressure and each company’s fundamental health, I decided to revise my Portfolio Grader recommendations for 59 blue chip stocks. Chances are you have at least one of these stocks in your portfolio, so you may want to give this list a skim accordingly. I’ve listed the first 10 stocks below that were downgraded from a Buy (B-rating) to a Hold (C-rating). For the full list of 59 stocks – as well as their Fundamental and Quantitative Grades – click here.
|Ticker||Company Name||Total Grade|
|AMX||America Movil SAB de CV Sponsored ADR Class L||C|
|ASX||ASE Technology Holding Co., Ltd. Sponsored ADR||C|
|BEKE||KE Holdings, Inc. Sponsored ADR Class A||C|
|BF.B||Brown-Forman Corporation Class B||C|
|DAR||Darling Ingredients Inc||C|
|GDDY||GoDaddy, Inc. Class A||C|
|IR||Ingersoll Rand Inc.||C|
|J||Jacobs Solutions Inc.||C|
Now, while earnings are expected to decline for the S&P 500, there is one sector that’s anticipated to post major earnings growth in the fourth quarter: energy.
As I mentioned yesterday, the energy sector is still expected to post earnings growth of 64.4%. Without energy, the S&P 500’s earnings decline would be even bigger, at a 7.3% drop.
That’s why I’m putting my “big bet” on the energy sector this year. And this past Thursday I hosted my Big Energy Bet event to share the best opportunities in this space.
During this event I also covered:
- Why I am so certain the energy sector should be the dominant force over the long term for the U.S. economy – and even the entire world.
- My “gameplan” for not only surviving the current economic climate, but building a “brick wall” around your retirement portfolio
- And how to access my No. 1 small-cap energy play… absolutely FREE.
If you didn’t get a chance to catch the broadcast on Thursday, don’t worry! You can catch a replay of the event by clicking here.
The Editor hereby discloses that as of the date of this email, the Editor, directly or indirectly, owns the following securities that are the subject of the commentary, analysis, opinions, advice, or recommendations in, or which are otherwise mentioned in, the essay set forth below:
JPMorgan Chase (JPM), Bank of America (BAC), Colgate-Palmolive Company (CL)