EarningsBeats.com Digest for December 13, 2021
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Growth Stocks Continue to Present Opportunities
If you watched throughout earnings season, then you know that many companies beat revenue and EPS forecasts. Our Strong Earnings ChartList (SECL) currently has 541 companies on it, which provides further evidence of the strong earnings season. Companies that can consistently beat earnings will see estimates raised and, as a result, will earn
higher valuations. One stock that recently beat both revenue and EPS estimates is Pure Storage (PSTG). Here's the current technical view:
After reaching a high in February, which also approximated its prior high in September 2018, PSTG finally broke out in late November and on very heavy volume. PSTG is in the computer hardware space ($DJUSCR), which has been dominant of late as well. For two years, PSTG downtrended vs. its DJUSCR peers, but it has begun to trend higher. Any time you find a leading stock in a leading industry group, I believe you have a much better chance of
outperforming the S&P 500. I expect PSTG to outperform as we head into 2022. In the very near-term, 20-day EMA tests represent solid entry opportunities, in my opinion.
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Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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