The Q1 earnings season is wrapping up. Companies easily beat top- and bottom-line estimates that had gone up ahead of the start of the reporting cycle, unlike in the past when estimates would go down before earnings releases. Let’s put it in perspective now with Our Chief Equity Strategist and Economist, John Blank, gives us his read on things now.

1. John, one thing that caught my eye for this Q1 season was a published report that said firms that beat EPS estimates in the past, typically outperform the S&P 500 by 100 basis points the day after reporting. But this earnings season, the typical stock that beat on EPS this quarter outperformed by just 51 basis points. What does that indicate?

2. You say the very high earnings growth rate we’ve seen is not solely a result of easy comparisons to the year-earlier period. What else factors in here?

3. Were analysts too aggressive in their downward revisions to EPS estimates during the first half of 2020?

4. Do the Q1 results provide a good reason for continued forward looking optimism?

5. So it seems this earnings season provides the market with a good tailwind going forward. What are a few others?

6. Big Tech has come under pressure recently amid a shift out of growth stocks and into cyclicals, despite the fact that the ‘Big 5’ Tech companies collectively enjoyed year-over-year growth rates of +104% in earnings on +41.5% in revenues. Do you think that’s due to the inflation talk out there or is it a sign that equity markets are overbought?

7. We’re just about wrapping up the last full trading week of May. Is the market choppiness we’ve been seeing going to last into the second half of the year? Should investors Sell in May and Go Away?

8. What is Fair Value for the S&P 500?

9. Three fast moving stocks are on your radar. They are BioNTech (BNTX Quick QuoteBNTX - Free Report) , Western Digital (WDC Quick QuoteWDC - Free Report) and Orient Overseas International (OROVY Quick QuoteOROVY - Free Report) .

Stock talk with our Chief Equity Strategist and Economist, John Blank. With John, I’m Terry Ruffolo.