EarningsBeats Digest

Published: Mon, 07/27/20

EarningsBeats.com Digest for July 27, 2020

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Dear Digest Subscriber,

At EarningsBeats.com, we track every earnings report; those that beat both top and bottom line expectations and have promising charts are added to our Strong Earnings ChartList.

As a thank you for subscribing to our newsletter, here is a copy of the current list. There are currently 210 companies on it and we will be adding many more as earnings season progresses. If you are a StockCharts Extra Level member or higher, simply log-in to your account before clicking the link below and you will have the option to save the list directly into your account. If you are not a StockCharts Extra Level member or higher, you can still view the list using the below link/password. Any updates that we make to the list within the next few weeks will not automatically sync with your account; to receive future updates, please consider joining us as a member.

Strong Earnings ChartList (case sensitive password: SECL75210)

Fixing Up Your Portfolio With Home Improvement Stocks

Home improvement ($DJUSHI) has been one of the strongest industry groups since the March low, long with home construction ($DJUSHB). Low interest rates and growing optimism that we could see a "V-shaped" economic recovery has institutions pouring into these groups and we've seen many beneficiaries. My favorite stock among the home improvement stocks would have to be Wayfair (W), one of our portfolio stocks, and a company whose business model - online shopping - fit like a glove when the pandemic hit 4-5 months ago:

Home improvement broke out recently on an absolute basis and did the same on a relative basis. The relative strength in W is quite clear and all of the bottom panels are pointing higher from left to right, which is exactly what we look for when identifying companies for our portfolios to outperform the benchmark S&P 500. On any pullback, I'd expect W to hold 195-200 price support. Also note that the 50 day SMA is currently at 195 as well. W threatened to close below its 20 day EMA on Friday, but rallied to close above it. That would have been the first close beneath the 20 day EMA since early-April. A close below that 20 day EMA would increase the likelihood of a 50 day SMA test. W will report its latest quarterly results on Wednesday, August 5th.

Happy trading!

Tom Bowley, Chief Market Strategist

EarningsBeats.com

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