Corporate Earnings

  • 29 Jul
    Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

    Corporate Earnings of the S&P 500’s Top 10: Why It Is Important for You

    • Corporate earnings and fundamentals are variable, pick the stocks that best suit you.
    • There are low PE ratio stocks, high growth stocks, and high dividend yielders – anything you might want.
    • But be aware: some companies engage in buybacks that are detrimental to shareholders’ value.

    Introduction

    When you add up the top ten companies by weight, they account for 17.7% of the total weight of the S&P 500. For investors who are heavily invested in the S&P 500, following the earnings of its top ten companies is essential in order to understand the risks and rewards of being invested in the index. In this article we are going to assess the current market situation by looking at what has been going on with the 10 biggest companies in the S&P 500 index. More →

  • 14 Jul
    As The S&P 500 Reaches New Highs, Asset Inflation Continues

    As The S&P 500 Reaches New Highs, Asset Inflation Continues

    • All factors are indicating an artificially created asset inflation.
    • Earnings are expected to decline with economic outlook being constantly revised downwards.
    • Gold is gaining alongside stocks which confirms that all assets are inflated.

    Introduction

    Amidst all the turmoil from BREXIT, negative interest rates and global downward economic growth forecasts, the S&P 500 has reached a new high. On Monday it closed at 2,137.16 points, overtaking the previous high of 2,130.82 from May 21, 2015. The Monday record was surpassed again on Tuesday and Wednesday, with Wednesday closing at 2,152.43. More →

  • 08 Jul
    Prepare for Earnings Season: Prices, BREXIT, GDP & Trends

    Prepare for Earnings Season: Prices, BREXIT, GDP & Trends

    • This article provides a list of companies whose earnings will be affected by the BREXIT.
    • The dollar is stable thus we should not expect strong global currency effects.
    • The probability of U.S. recession has hit an 8-year high which should be detrimental for earnings in the next two years.

    Introduction

    In the long term, stock returns are perfectly correlated with the underlying earnings and therefore the upcoming Q2 2016 earnings season is very important. Positive earnings could push the markets to new highs while bad news could indicate the start of a recession or bear market. More →

  • 22 Jun
    Don’t be Fooled by Noise, Earnings Will Tell the Truth

    Don’t be Fooled by Noise, Earnings Will Tell the Truth

    • A look into next month’s earnings season and trends.
    • 6 out of 10 S&P sectors have earnings declining.
    • 72% of companies issued negative guidance.

    Introduction

    With all eyes focused on Brexit and the FED, it seems that no one really cares what is going on in the economy and, most importantly, with corporate earnings. Don’t forget that next month is earnings season and the earnings trend up until now has been a negative one. As corporate earnings are the main factor in stock returns, you should be focusing on how to prepare for that and not on Brexit as it will probably be forgotten by next week. More →

  • 05 May
    There is a Huge GAP Between Reported and GAAP Earnings

    There is a Huge GAP Between Reported and GAAP Earnings

    • Real earnings are currently 25% lower than pro forma reported ones.
    • The other consolidated income statement can also hide surprises.

    Introduction

    How would life look if things were as you saw them or exactly like someone presented them? Surreal for sure as it would require a non-human mind to objectively process information and accept a situation as it is. People usually fall in love with the wrong person or feel depressed over nothing important. The same is applicable in business, but it’s strongly biased toward falling in love with one’s business and refusing to see the flaws of it. Such a behavior results in a large gap between pro forma reported earnings and official Generally Accepted Accounting Principles (GAAP) results. More →

  • 28 Apr
    An Analysis of the Latest Earnings Reports

    An Analysis of the Latest Earnings Reports

    • “Sell in May and go away” doesn’t sound so foolish anymore.
    • The Dow Jones Industrial Index average revenue has declined by 4.1%.
    • High liquidity and employment enables buybacks and pension funding that keep the market at high levels.

    Introduction

    Recently there have been some surprising earnings debacles. This article is going to elaborate on them and discuss possible reasons and consequences of the earnings misses. More →

1 2 3