Good Way: Buy shares in any company that had an earnings surprise and rose the day following the news. These stocks experience what academics call the "Post Earnings Announcement Drift". Studies clearly show that these stocks usually outperform the market over the next 9 months. Conversely, you should sell any stock in your portfolio that misses its earnings numbers as it is likely to underperform the market for the next few quarters. The downside of this approach is that there are literally thousands of stocks to choose from every quarter. Best Way: Find stocks where the earnings "whispers" tip you off that a big surprise is coming. Buy the shares shortly before the announcement, and enjoy quick gains of 10%, 15%, even 20% when the earnings surprise is officially reported. I know what you're thinking. There are no Magic 8-balls for the stock market, so how can this be possible??? But fret not - this isn't a magic show. It's pure science. The concept of finding a profitable source of earnings whispers has long been the Holy Grail of stock investing. Many experts have tried and failed to make this work. In fact, we had been researching this for countless years. Early on we found clues that identified stocks more likely to surprise, but not necessarily rise in price. It wasn't until the summer of 2010 that we discovered the right combination of elements. Since refinements were made in 2014, the system has correctly called POSITIVE surprises a whopping 81.39% of the time, with the vast majority accelerating in price. The Easy Way to Apply This Breakthrough Here's the challenge: In each earnings season, including the current one, there are hundreds of stocks that are likely to achieve positive surprises. This is why our Zacks research team poured so much effort into creating a special strategy that uses additional filters to narrow down the lists. It detects rare companies that are most likely to both beat earnings and jump in price. This drives the portfolio I am managing called the Zacks Surprise Trader. I can't share all the details of the secret formula with you, but our system relies on two under-used signals coming from the brokerage analyst community. These two whispers are then layered on top of other time-tested elements such as the Zacks Rank and Zacks Industry Rank to find only the best stocks... in the best industries... with the best chances of beating earnings and quickly rising in price. If you would like to receive our precise whisper trading signals through the heart of this earnings season, I invite you to look inside our Surprise Trader portfolio ASAP. Now is the absolute best time to do it. From 1,133 companies scheduled to report earnings in the next three weeks, I have locked onto a small handful of standouts predicted to exceed expectations when their earnings reports are released. New Surprise Stock to Post After the Market Opens Tuesday Morning Check our live recommendations right now, and be first to view the one I'm adding Monday. You can take advantage of ripples of buying even before a company reports earnings. Don't miss your chance to beat Wall Street to the punch and make the most of the potential double-digit price pops. Our signals predict big positive surprises and they've been right a remarkably consistent 81.39% of the time! Even in 2022, the most bearish year since 2008, Surprise Trader nailed 21 quick double-digit gains. For example, +62.5%, +24.3%, +59.8%, and +19.5% in as little as 10 days.² Bonus Report: Another reason to look into this right away is that you are also invited to download our just-released "Early Warning Alert" report. It reveals Stocks to Sell BEFORE They Report Earnings in the Coming Weeks. Our strategy works both ways, and you can use this report to avoid companies that are more likely to report negative surprises from January 17-27. But don't delay. Our "surprise" recommendations are generally closed to the public. Today the portfolio is open again, but your chance to gain access ends on midnight Monday, January 16. See our Surprise Trader stocks and "Early Warning Alert" right now » All the Best,  David
Dave Bartosiak is Zacks' resident earnings surprise expert. He selects stocks and delivers daily commentary for our Surprise Trader portfolio. |
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