The past few months have seen some minor scandals push marijuana shares’ prices down, which is natural in a new industry like this.
Aphria, however, zoomed to an intraday high of $7.45 after announcing earnings.
The company increased its net cannabis revenue by 85%, which is a big deal – and it won’t be the only cannabis firm to do that.
Our Technical Trading Specialist is looking at all the big earnings plays ahead during this crucial week for the markets as earnings season comes to a close.
Aphria reported its fiscal fourth-quarter earnings last week, and the company exceeded all expectations.
And it beat those estimates from underneath a cloud of short sellers' spurious innuendo, to boot.
After a quarter of overall decline in Canadian cannabis revenue, Aphria saw an increase of 85% - that's 85% sequentially and not year over year. The company also turned earnings before interest, tax, depreciation, and amortization (EBITDA) positive - albeit after adjustments and with help from a European pharmaceutical distribution business the company owns.
And to top it off, management's optimistic about the future.
So any investor could look at Aphria's reporting and conclude it had a great quarter. And they'd be dead on.
What might not be so obvious at first glance is that this company just showed investors how it was going to take the cannabis sector to the next level.
There’s much more here than meets the eye…
Earnings season is now in high gear, and as I predicted last week, the numbers are coming in stronger than the pundits expected.
That was definitely the case with the big banks last week; Goldman Sachs blew the doors off Wall Street's expectations, posting earnings of $5.81 versus the $4.89 analysts had on the board. JPMorgan posted earnings of $2.82 versus estimates of $2.50.
JPMorgan's CEO, Jamie Dimon, noted "positive momentum with the U.S. consumer - healthy confidence levels, solid job creation, and rising wages."
Now, it's certainly true the consumer is stronger than the headlines suggest. That's a truth we talk about frequently.
But that's not the real story...
The truth is something you and I and just about every American know deep down: There are some significant challenges facing U.S. consumers right now.
I'm talking about very real inflation - the existence of which the Fed has denied for years now - and the ever-increasing levels of consumer debt out there.
The two are related, despite what you might hear coming out of Washington and Wall Street.
We've had a few "appetizers," but the full earnings season is here now.
These reports can make traders and investors really anxious, when they hope they've bought the right stock, or put on the right trade with calls or puts.
Trouble is, moving ahead of an earnings release and hoping things simply break your way is the absolute worst way to be in the markets. You can lose your shirt, and chances are you will.
But when you play it right with the Money Calendar, like you'll see in the video I'm about to show you, all that anxiety turns to excitement... over what you're going to do with all the extra cash. You'll sleep better, too - believe me.
Why? Because this method slashes your risk to a minimum, even as it boosts your potential for profits.
Just watch how easy and hassle-free it is to make money at this time of year...
Well, believe it or not, Q2 earnings season is upon us – and it’s widely expected to be a downer.
With the average decline in earnings coming in around 2.6%, it’ll be the second straight quarter of declines year over year.
By comparison, the average estimated earnings decline was just 0.5%, so this is potentially a big deal.
But not to worry, because Keith’s going to show you how to capture all the upside…
Constellation Brands Inc. (NYSE: STZ) has grown 20% in the last six months, and Wall Street projects it will grow another 46% with a high target of $288.
That’ll register as 66% growth for 2019.
But there’s plenty of reason to believe this projection is not generous enough.
Wall Street has shown, on multiple occasions, that it does not fully appreciate the growth potential of Constellation Brands.
Some shady financial practices have inflated the stock prices in this sector, but this one strategy weeds out the sick companies from the healthy.
It's another huge week of earnings reports with 27% of the S&P 500 companies releasing their reports.
Chief among them are two of the world's largest companies by market capitalization - Alphabet Inc./Google (GOOGL) and Apple Inc. (AAPL).
Investors will have their attention fixed on these two behemoths, as their performance will almost certainly help dictate whether the market continues to climb, or we see a fall back below the new intraday high we saw this week.
Here's what you need to pay attention to...
Get this - the big cap tech companies all exceeded expectations, helping drive the S&P 500 to fresh all-time highs.
And it's nowhere close to being over.
In fact we're at the start of the second-busiest reporting week of the season, with 135 of S&P companies scheduled to report.
Here are the few big influencers we're looking at...
This earnings season, there are dozens upon dozens of companies heading higher in a hurry.
In fact, Chris is going to tell you about not one, but two that are up for grabs.
Join him right at his desk, and he'll tell you all about them...
JPMorgan Chase & Co. decisively moved the markets on Friday with its reported record Q1 revenue and earnings; CEO Jamie Dimon's positive economic outlook helped boost not only the stock, but the market in general.
And that's about as good as it got for the big banks... From there, it seemed like no amount of good news - and there was some good news - was enough to pull stocks out of the funk.
Wells Fargo also reported good earnings and a decent outlook, but its volume of loans and deposits were down more than analysts were expecting. WFC shares were up in the Friday pre-market - perhaps on JPMorgan's coattails... and promptly plummeted for the rest of the day.
In Monday pre-market moves, two more of the "Big Six" U.S. banks reported earnings, and it didn't go that well. Goldman Sachs tumbled 3%; earnings beat estimates... but revenue dropped 13% year over year. Citigroup also reported strong earnings and reduced revenue, though it had much less of a drop than Goldman. Citigroup's stock "only" fell 0.5%.
On balance, a dreary, lackluster story... so far.
But that's not the whole story.
This week, it's all about "TBTF" banks - as in, "too big to fizzle."
There's a lot riding on the financials, but I'm looking at pharma and healthcare, too, and I'll tell you why in a minute.
Fact is, this is one of the most important earnings seasons in recent memory, and investors are flat-out worried that it'll be one of the worst earnings seasons in recent memory.
JPMorgan Chase & Co. officially kicked off Q1 earnings season on Friday with a welcome revenue beat that nudged stocks gently upward for the day.
On the other hand, Bank of America Corp. reported a bumper crop of profits on Monday, but the shares slumped anyway because CFO Paul Donofrio voiced concerns about the slowing pace of interest rates - a big driver of bank profits.
Same deal with Goldman Sachs: It had a convincing earnings beat and a tasty dividend hike, but a drop in trading revenue sent the shares lower.
That shares didn't necessarily take off is a pretty good indicator of the worry out there in the streets. Freaked-out investors are punishing stocks for "sins" they might've forgiven two or three quarters back.
Me? I'm not sure it'll be the worst earnings season in years, but it's certainly going to be the one of most eventful.
It's finally here - reporting kicks off next week, as the financials begin showing the results and the market hints that it's ready to make a seasonal move higher.
You guessed it: seasonality.
Bill Patalon unveils the seven deadly sins that corporations from around the world commit to hide garbage in their earnings reports.
Here's how to spot them yourself...
