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Stock Reacting Very Positively To Earnings

FYI: Nearly 1,500 US companies have reported earnings since the third quarter season began in early October. As shown below, the average stock that has reported this season has gained 0.99% on the day of its report. (For companies that report in the morning, we use that day's change. For companies that report after the close, we use the next day's change.)
Regards,
Ted
http://www.bespokeinvest.com/thinkbig/2014/10/31/stocks-reacting-very-positively-to-earnings.html?printerFriendly=true

Comments

  • Hear, hear.
  • Follow the money, follow earnings...you won't go wrong...Think about it for a few seconds, what are companies in business for?, why do you invest in a company?
    Tah...Make money? ok....you got it...
  • Very insightful! I'm sure that never occurred to anyone else at MFO. Thanks for explaining life to us.
  • So what's the surprise about earnings? is that revelating news? to report? that's my point absorb it...move on
  • Old_Joe said:

    Very insightful! I'm sure that never occurred to anyone else at MFO. Thanks for explaining life to us.

    Hi Old_Joe

    As I mentioned, it would not take long to learn a wealth of knowledge from Mr. Bay.

    Mona

  • Wait guys. Don't we also know at MFO, the shenanigans companies do to report positive earnings. How about IBM keeping up with their earnings number on declining revenue year after year, until they could cook things up no more.

    Earnings growth drive stock prices. Yes in a bull market. And yes if you believe the numbers. I never believe the numbers. So I stopped investing in individual stocks. No amount of analysis can counter a crooked numbers. So I started doing ANALysis and invest only in mutual funds.
  • Oh I thought Corporations payed taxes on "earnings", adjust a Quarter maybe, Pay taxes on "non- earnings", I doubt it.
    I thought Mutual funds bought individual stocks (with crooked numbers?) just thinking
  • edited October 2014
    Tampabay said:

    Oh I thought Corporations payed taxes on "earnings", adjust a Quarter maybe, Pay taxes on "non- earnings", I doubt it.
    I thought Mutual funds bought individual stocks (with crooked numbers?) just thinking

    Yes of course. I try to find managers who have inside information. Otherwise known as good active managers. At least that's what I have convinced myself rather than thinking they are geniuses. So I don't fall in love with them or their fund any more. Else I invest in index funds.
  • Here Old Joe: your stock market lesson for the day, NOW you are informed:

    " of the 362 companies that have reported earnings so far, 78% have reported earnings that have beaten the mean estimate of analysts, John Butters, senior earnings analyst at FactSet, said in a note published Friday. The blended earnings growth rate for the quarter is 7.3%, well above the estimated growth rate of 4.5% that was expected by analysts as of Sept. 30."

    “If earnings move higher, the stock market will too,” Doll said. “If they don’t, the stock market will struggle.”

    Mona already knows.
  • @Tampabay: Here's your lesson for the day, always link the source so we all can be informed
    Regards,
    Ted
    http://www.factset.com/websitefiles/PDFs/earningsinsight/earningsinsight_10.31.14
  • edited November 2014
    Hi all,

    The WSJ is reporting it a little differently. They have the TTM at 18.68 and forward estimates at 16.65 for the S&P 500 Index. My source is linked below.

    http://online.wsj.com/mdc/public/page/2_3021-peyield.html?mod=wsj_mdc_additional_ustocks
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