FYI: We’re now right smack dab in the middle of earnings season, so today we wanted to highlight a couple of interesting sector trends we’ve recently identified. Thanks to our Interactive Earnings Report Database, we have a list of every single quarterly earnings report for US stocks going back to 2001. For each report, we know whether the stock beat or missed consensus earnings and revenue estimates and how the stocks performed.
Using our database, we track the rolling 3-month earnings beat rate for all US stocks. This shows the percentage of companies that are beating consensus analyst earnings per share estimates over time. We also track the rolling 3-month earnings beat rate by sector.
Below is a chart showing the rolling 3-month earnings beat rate for all US stocks compared to just Technology stocks. As you can see, from 2002 through 2009, the earnings beat rate for Tech stocks generally tracked the beat rate for all stocks. But during the current bull market that began in early 2009, we’ve seen Tech stocks separate from the pack when it comes to beating analyst earnings estimates. Since 2014, the divergence has gotten even more prominent. As of now, the rolling 3-month earnings beat rate for Tech stocks stands at 75%, while the beat rate for all stocks is just 60%.
Regards,
Ted
https://www.bespokepremium.com/think-big-blog/technology-stocks-winning-the-beat-game/
