EarningsBeats Digest

Published: Mon, 06/21/21

EarningsBeats.com Digest for June 21, 2021

Trading Places Live!

Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.

Expectations Are Building While the Price is Falling

Our Raised Guidance ChartList (RGCL) is one of my favorites as it tracks companies that are expecting things to improve in their businesses. But while expectations may be improving, the stock market's short-term inefficiences doesn't always translate into an uptrending stock. Service Corp (SCI) raised guidance in early May and its stock price rose considerably to roughly 56.50. Six to seven weeks later, SCI has fallen back below where it was when it raised its guidance and is now trading below 52. Here's the current chart:

Price support is now in the 51-52 area and the trendline established from July, September and March lows intersects that range as well. Look for a potential reversal in this zone, with a return trip to 56.50 the short-term target. In May, SCI hit a 52-week relative high vs. its specialized consumer services peers ($DJUSCS). The group itself is consolidating. Renewed industry strength could certainly be the catalyst for SCI's return to its recent price high.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.