So far this earnings season, 67% of the companies that have reported their quarterly numbers have beaten consensus analyst earnings per share estimates. That’s actually a very strong reading relative to the historical average earnings beat rate. As shown below, sectors like Technology, Financials, and Industrials have posted even stronger beat rates this season. A whopping 78% of Tech stocks have beaten estimates.
Unfortunately for market bulls, the strong beat rate has not translated into higher stock prices. In a B.I.G. Tips report just published for Premium and Institutional subscribers, we look into this phenomenon — explaining why it’s happening and what it might mean for the market and the individual stocks that are getting hit after they report earnings.
To view our just-published B.I.G. Tips report titled “Beats Get Beaten,” sign up for a monthly Bespoke Premium membership and get 10% off for life ($89/month).