So let me set the stage. At EarningsBeats.com, we're tracking every earnings reaction for companies with $1 billion or more in market capitalization. Through yesterday's close (May 7th), we've now reviewed about 1600 earnings reactions. We've studied them by sector and by industry group. We've also sorted them by best initial reactions (gaps), intraday trading the day after earnings (from open to close), and 1-day change (close before earnings vs. close after earnings). In this article, I want to discuss the best industry group based on intraday trading.
In other words, the earnings news is out, market makers determine opening price based on supply and demand.....and then the accumulation/distribution begins. Does the stock move higher during the day or does it move lower?
Well, based on our analysis to date, Wall Street loves oil equipment & services ($DJUSOI). Technically, it's interesting to see that the DJUSOI's AD line (accumulation/distribution line) is at its highest level since August 2020:
Friday's breakout doesn't hurt either.
Now let's get back to those individual earnings reactions. Here are a few tidbits of earnings information regarding oil equipment & services stocks thus far this earnings season:
- 17 industry group stocks have been reviewed
- only 6 have gapped higher initially, with the largest gap higher being +2.79% (PTEN)
- 14 of the 17 stocks have closed higher than their open, with the average intraday gain being +3.30%
- the best performer gained 13.49% during the day after earnings and has surged approximately 30% since its earnings were released; this stock will be featured in our free EB Digest newsletter on Monday
This is just one example of how the EarningsBeats.com research and education platform is different from all others. Our long-term stock portfolio performance has been spectacular with each of our 4 portfolios outperforming the benchmark S&P 500 since their respective inceptions. Our Model Portfolio has gained 215.95% since its inception on November 19, 2018 and through the Friday, May 7th close, while the S&P 500 has gained 57.30% over the same period.
On Monday, May 10th, at 4:30pm ET, I'll be hosting our latest "Sneak Preview" webinar of our Stock Portfolios, discussing, among other things, our selection strategy and process. I'll also be discussing some of the results of our Earnings Reactions spreadsheet, providing the results of my analysis, zeroing in on what I find to be of utmost importance from both a trading and investing perspective. For more information on how to register for this FREE event, CLICK HERE.
Happy trading!
Tom
