We're about midway through earnings season for Q1 2023, and markets are trying to trend higher, driven by a lot of positive reports from the big tech names that have been pushing the rally we've been seeing these past few weeks.
I'll admit, I'm still a bit cautious myself, because if you look outside of those twenty or so stocks that are moving the market, you'll see a much scarier picture. Not only are we lacking in the broad support necessary to keep the rally sustainable, but a lot of stocks are taking a dive even as indices are climbing.
If the end result is an overall earnings recession, and that's compounded by an economic recession, things could go bad very fast. I wrote about just how bad in last week's Total Wealth; check that out if you haven't already.
But for the moment, there are a lot of opportunities out there to make some money following the market's momentum. To that end, I wanted to look at some of the big names that have just reported and show you what I watch for when I'm trying to find the best post-earnings plays.
Here's the thing: a great company isn't always going to get a big pop even if they come in above consensus estimates for EPS (earnings per share). Context is key to put their numbers in perspective - did they beat estimates because they've had a dismal year? Are profits keeping pace with earnings growth? What's their debt load look like? You need the big picture to make the best decisions.
So here's my breakdown of the stocks you submitted this week, both the best buys and the stinkers. Keep an eye out in particular for my take on General Electric Company (GE) - usually a contender for "most boring stock on the S&P 500," it's got some real tailwinds lately that make it worth playing.
Here's the video...
Earnings season is taking up a lot of space in the headlines. It's understandable, but savvy investors know to look past the mainstream media for some of the best opportunities out there. A huge land grab taking place right now in the richest oil-producing region of the United States, with trillions of dollars in play, and it's flying under the radar of most outlets.
Garrett Baldwin, executive producer of Money Morning LIVE, has his finger on the pulse of this buyout boom, and has prepared a full briefing on all the all the companies investors need to be targeting right now.
The post The Best (and Worst) Earnings Surprises Right Now appeared first on Total Wealth.
About the Author
Shah Gilani boasts a financial pedigree unlike any other. He ran his first hedge fund in 1982 from his seat on the floor of the Chicago Board of Options Exchange. When options on the Standard & Poor's 100 began trading on March 11, 1983, Shah worked in "the pit" as a market maker.
The work he did laid the foundation for what would later become the VIX - to this day one of the most widely used indicators worldwide. After leaving Chicago to run the futures and options division of the British banking giant Lloyd's TSB, Shah moved up to Roosevelt & Cross Inc., an old-line New York boutique firm. There he originated and ran a packaged fixed-income trading desk, and established that company's "listed" and OTC trading desks.
Shah founded a second hedge fund in 1999, which he ran until 2003.
Shah's vast network of contacts includes the biggest players on Wall Street and in international finance. These contacts give him the real story - when others only get what the investment banks want them to see.
Today, as editor of Hyperdrive Portfolio, Shah presents his legion of subscribers with massive profit opportunities that result from paradigm shifts in the way we work, play, and live.
Shah is a frequent guest on CNBC, Forbes, and MarketWatch, and you can catch him every week on Fox Business's Varney & Co.