EarningsBeats.com Digest for January 22, 2021
|
Major Quarterly Event!!
Next Monday, January 25th, Chief Market Strategist Tom Bowley will be conducting the "Q4 Earnings Webinar" which is quite timely considering we are getting ready for a barrage of earnings starting next week. Already we've seen some big responses to earnings- as an example, NFLX which soared after its earnings report. Who might be next? You can learn more about this timely webinar and how to participate by clicking on the link
below.
Big Blue Turns Black & Blue After Reporting Earnings
International Business Machines (IBM) used to be one of the best investments on Wall Street. Those days are long gone. In what has become a quarterly ritual, IBM is being hammered after reporting its results. On the bright side, IBM reported revenues and EPS that easily surpassed consensus estimates, $19.98 billion vs. $17.47 billion (revenues) and $2.07 vs. $1.78 (EPS) - according to Zacks.com. I did see a report that some sources were
showing that IBM missed revenue estimates. Bottom line, however, is that Wall Street simply isn't impressed with IBM's story. The chart tells us most of what we need to know:
The black-dotted vertical line in early-April 2013 marked the beginning of the secular bull market as the S&P 500 finally cleared the highs established in 2000 and 2007. Since the beginning of this bull market, IBM has fallen close to 20% and things got worse in last night's after hours action, with IBM down another 7.4%. The above chart shows significant relative weakness that's been in play most of the last decade. IBM is the EXACT
OPPOSITE of what we look for at EarningsBeats.com. We want leading stocks in leading industries. IBM is in a completely different league, one that we want no part of.
Happy trading!
Tom Bowley, Chief Market Strategist
EarningsBeats.com
"Better Timing. Better Trades."
|
|
|
