Given the ability of earnings reports to catapult stock prices higher in a short period of time, the authors of today’s article state “It’s no wonder why options traders tend to salivate like Pavlov’s dogs during earnings season.” They acknowledge, however, that playing the earnings game successfully is not easy – which is why they outline what they believe is a better way for individual investors to capitalize on earnings season. For more, CLICK HERE.
While Warren Buffet’s favorite stock market indicator suggests that investors are in for some serious losses, “the market continues upwards with a short-sighted agenda and a complacent attitude,” argues the author of today’s article. More specifically, he argues that the health of the U.S. economy and stock prices are diverging – and that convergence will come in the form of stock prices falling. What does he outline as a good strategy to take advantage of the current complacency and risk taking in the market? CLICK HERE.
One study identified them as “the most powerful force impacting stock prices”: earnings estimate revisions. As the author of today’s article states, “That means stocks with rising estimates could be the best investments for individual investors.” As such, the author screened for cheap stocks (priced under $15 a share) where analysts have increased their earnings per share estimates. For five stocks that passed the screen – including a medical device manufacturer, an iron ore mining company, and a Spanish banking group – CLICK HERE.