EarningsBeats.com Digest

Published: Fri, 08/23/19

EarningsBeats.com Digest for August 23, 2019

We inserted the wrong chart in our EB Digest this morning. It was meant to be L Brands (LB) not Hershey (HSY.), and that is corrected here.

Dear EarningsBeats.com Community Member.

I wanted to let our EB Digest members know about some exciting new enhancements to our EarningsBeats.com service. We've already gotten some great feedback from our subscribers so I thought I would share them with you.

First, we just added a FAQ section to the EarningsBeats.com site. It's still a work in progress- there's still plenty to add - but we've at least addressed those questions we get most often. And a big shout out to Erin Webber who helped us get it off the ground!

In addition to our existing membership features including our Strong Earnings ChartList (currently over 300 stocks that beat earnings expectations with annotated charts) Tom Bowley's Top 10 Stock Picks - Model, Aggressive and Income - 30 stocks in all - just released this past Monday, our Daily Update (Big Picture) and Trade Alerts, we have added a Webinar Archive featuring recordings that are highly educational. For example, Tom Bowley recently conducted a webinar on "The Power of Relative Strength" that is now available to our members that EVERYONE should watch; It's THAT good.

With Tom Bowley coming back to EarningsBeats.com we'll be looking to enhance our service even more. In fact, there's never been a better and more exciting time to become a member of EarningsBeats.com and get a full 30 days of membership for $7 that will get you access to everything I just pointed out and everything else we have to offer. So, why not give it a try?

At your service,

John Hopkins
EarningsBeats.com
Better Timing. Better Trades.

Pay Attention to Relative Weakness

While I spend a lot of time reviewing companies that post great results and show excellent relative strength, I want to continue to also highlight the types of companies that you want to avoid, especially heading into an earnings report. L Brands (LB) managed to "only" finish 3rd worst performing stock in the S&P 500 on Thursday following an awful quarterly earnings report in which LB fell short of revenue estimates and then lowered its Q3 EPS guidance. Here's a look at the chart of this beleaguered retailer:

One quick look at the chart, however, prior to its earnings report would have suggested Wall Street was bailing on LB. LB's relative performance vs. both its peers and the S&P 500 were in near freefall during the 6-7 weeks leading up to its earnings report. You have to ask yourself.....why would that happen? Well, big Wall Street firms can visit companies up until the "quiet period" begins at quarter end. From there until the earnings release, many times we get a pretty good sense of what these firms think of the companies they cover. They were selling LB in a big way and on Wednesday evening, the public found out why. Those following technical analysis and watching the relative weakness already knew.

Tom Bowley

Chief Market Strategist
EarningsBeats.com

Better Timing. Better Trades.