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3 Secrets to Quick Profits this Earnings Season

2 14 26

The best mornings are the ones where you wake up to a positive earnings surprise and big profits. The worst mornings are the ones where you wake up to an earnings miss and heavy losses. Finally, it’s beginning to feel like the world has COVID-19 on the ropes. The fight is not over, but we can see the light at the end of the tunnel. The threat of the pandemic has lingered over the stock market like a cloud for months. As the clouds move aside, yet another threat is apparent on the horizon…inflation and tapering from the Fed. We are already dealing with supply chain constraints, a lack of semiconductor chips, and labor shortages. That means we’ve got a delicate balance of risk and reward heading into this quarter’s round of earnings. With so much riding on this quarter’s round of reports, one thing is evident: Nothing can move a stock faster, up or down, than an earnings announcement. This is especially true today with the stock market coming down from all-time highs and approaching key technical levels. Over the last quarter, Energy stocks have come back en vogue, with double digit returns while Basic Materials have struggled, giving back over 6%. Any stocks unfortunate enough to hiccup this earnings season, and not meet the lofty expectations of investors will be severely punished. This will lead to devastating losses for those unlucky shareholders. However, the owners of stocks with positive surprises will be richly rewarded. So now is the perfect time to align your portfolio to profit in the month ahead. You should already know Zacks Investment Research specializes in the coverage of corporate earnings. And more importantly, how to profit from this information. So, today I'm going to share with you 3 proven secrets to profit from earnings announcements. (Hint: Be sure to read to the end as the 3rd strategy is by far the most profitable) Secret 1: Target 4 Leading Indicators of Positive Earnings Surprises The most obvious strategy is the reason we are all here. The 4 leading indicators I refer to are the 4 factors of the Zacks Rank. Before you skip this section, let me share some information with you that you may not have known. In the mid-1970s Len Zacks took his mathematical skills........

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