You are being directed to ZacksTrade, a division of Zacks & Company and licensed broker-dealer. ZacksTrade and Zacks.com are separate but affiliated companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Friday morning I had an extended conversation with Sheraz Mian, our Director of Research. He is one of the few people on this planet who specializes in the area of corporate earnings.
His assessment of earnings season so far this quarter is neutral over all. But if you strip out the strong earnings in financial stocks, then earnings growth is actually negative... and thus this earnings season is actually quite poor.
The above event also means that current estimates for most other firms are too robust for the back half of 2013 and into 2014. This will lead to more negative estimate revisions versus positive going forward.
Reity, you guys believe in the power of earnings estimate revisions. Isn't this an ominous sign?
In the short run it is no different than what has been happening since the beginning of 2012. Estimates keep getting trimmed, but since stocks were so much more attractive than bonds or cash, then they rose in value. And there likely is more room to the upside with that equation as people lose money in their bond holdings.
However, in the long run when stocks become fully valued and estimates are coming down, then stocks will stagnate or retreat. We are not there yet, but a realistic concern for the future if stocks keep racing higher without a stronger earnings backdrop.
Stay bullish for now. And we will keep you posted as to when it is time to start getting more defensive.
• Ahead of the Market (daily commentary from Sheraz Mian getting you ready for each new trading day).
The 21st century industrial revolution has already begun. All because of an incredible invention that's made in America.
Business Insider calls it "the next trillion dollar industry." The Economist compares its impact to the steam engine and the printing press. And technology experts -- like the guys who brought you the BMW 3-series, the F-35 fighter jet, and Amazon.com -- think it could be "bigger than the internet."
A new investment video reveals the impossible (but real) technology that could make you impossibly rich. Watch it now, before the skeptics on Wall Street wise up and start looking for their piece of the action.
Today, Zacks members are invited to download a revealing Kevin Matras Special Report for FREE. Our Zacks' research expert strips away the mystery from three powerful, often misunderstood strategies that have been steady, conservative money makers in up-and-down markets like we're seeing now.
You probably never even heard of two of them. Don't miss Kevin's step-by-step explanation of how he personally made +98.7% in less than five months.
This free resource is being sent by Zacks.com
to our subscribers. We look for investment resources and inform you of
these resources, which you may choose to use in making your own
investment decisions. Zacks is providing information on this resource to
you subject to the Zacks "Terms and Conditions of Service" disclaimer. www.zacks.com/disclaimer
Past performance is no guarantee of future results. Inherent in any investment is the potential for loss.
This material is being provided for informational purposes only and
nothing herein constitutes investment, legal, accounting or tax advice,
or a recommendation to buy, sell or hold a security. No recommendation
or advice is being given as to whether any investment is suitable for a
particular investor. It should not be assumed that any investments in
securities, companies, sectors or markets identified and described were
or will be profitable.
information is current as of the date of herein and is subject to
change without notice. Any views or opinions expressed may not reflect
those of the firm as a whole. Zacks Investment Research does not engage
in investment banking, brokerage, market making or asset management
activities of any securities. Visit www.zacks.com/performance for information about the performance numbers displayed in this press release.
If you would prefer to not receive future profit-producing emails from Zacks.com the primary purpose of which is the commercial advertisement or promotion of a commercial product or service, then please click here and confirm your request. If you have trouble with the unsubscribe link, please email firstname.lastname@example.org.