One Week Into Earnings Season, S&P Is Outperforming Prior Periods

We have had a fantastic start to earnings season earnings season with 103 companies in the S&P 500 reporting and 84% beating or meeting earnings estimates. Revenue beats are fairing well also with 54% of the companies exceeding estimates led by Healthcare, Technology and Financials respectively. This is up substantially from 1Q where more companies missed revenue expectations than met. So far, 5 of the companies highlighted in Stealth Growth newsletter have reported earnings. Each has traded up after posting results with the average return since earnings being 7.3%.

So what does this mean? In our humble opinion, there are three takeaways:
1) There is going to be a stream of positive catalysts over the next two weeks.
2) Lesser known companies that are set up for fundamental improvement will outperform the indexes.
3) We're pretty good stock pickers.

Please feel free to trial our Stealth Growth Investor newsletter here.

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