Earnings Scoreboard
After the end of every calendar quarter, the Navellier research team tests
for "what is working on Wall Street" to develop fundamental variable models
that we think are good predictors of stock movements. A key variable
included in virtually every model our firm has ever produced is known
as "earnings surprise." An earnings surprise occurs whenever a company's
actual earnings report either exceeds (positive) or fails (negative) to
meet analysts' earnings expectations. Since we don't short stocks, we look
for positive earnings surprises, and we may be entering a banner period for
this key variable. The academic research is conclusive about earnings
surprises: there is a statistically significant correlation between a
company's surprise earnings announcement and an increase in the company's
stock price: click the following link and type in ‘earnings surprise’
Earnings Surprise
We think our portfolios are packed with companies reporting compelling
earnings surprises. Below are the complete holdings of six of our
portfolio strategies showing earnings surprises. (Where you see “#N/A,”
the companies likely either (1) lacked sufficient analyst estimates to
generate an earnings surprise value or (2) were reporting no surprises).
These data are updated on Tuesdays at 2pm Pacific Time.