Strong Earnings = Strong Performance


At we focus squarely on stocks that beat earnings expectations and also have strong charts. We do this as we have found that companies who report strong numbers get a lot of attention which makes sense given the single most important attribute investors look for in a company is a strong bottom line.

For example, Heartland Payment Systems (HPY) recently reported their numbers and beat both earnings and revenue expectations. And as you can see below, shareholders were rewarded with a very nice move to the upside with the stock just hitting an all time high:

Not every stock that beats expectations explodes to the upside. For example, a company might report very strong numbers but guide lower going forward and get hammered in the process.Why? Because investors are always asking, "what's next?" But ultimately, if a company beats earnings expectations and guides higher, there's a strong probability the stock will go higher, and these are the ones you should be looking for.

We're entering a time of the year that is historically very favorable for stocks. And at this point the vast majority of the highly visible companies have reported their earnings. So as a trader you have an opportunity to benefit by gravitating to those stocks that are likely to garner the most attention.

We have a feature at, our "Candidate Tracker" where we show those companies that beat earnings expectations and have solid charts. If you would like to see a sample just click here.

At your service,

John Hopkins

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