More than 1,500 stocks have now reported Q2 earnings, and as shown below, the percentage of them that have beaten consensus EPS estimates is down slightly this quarter versus the last two quarters.
Forward guidance numbers have been more positive than negative thus far. The chart below shows the spread between the percentage of companies raising guidance minus lowering guidance each quarter going back to 2001. After years of companies generally guiding more negative than positive from 2011 through 2016, sentiment has shifted to being more optimistic since the start of 2017.
While still positive this season, the guidance spread has dipped quite a bit versus the past two quarters, and we will be watching this reading closely over the final two weeks of earnings season to make sure it stays positive.
An earnings “triple play” is a term we created back in the mid-2000s for a company that beats earnings estimates, beats revenue estimates, and raises guidance on its quarterly earnings report. We consider “triple plays” to be the cream of the crop during earnings season, and we track them closely day in and day out to look for new long ideas.
This earnings season there have been nearly 100 “triple plays” so far, and Bespoke members can see a regularly updated list of them at our Triple Plays page.
On Friday, we identified the triple plays from this season that also have the most attractive chart patterns at the moment. Twenty-three stocks made the cut, and we think this list is a good starting point for investors on the prowl for new ideas!
If you want to see the list of 23 triple plays that we think have the most attractive chart patterns, gain access by taking advantage of our new member special below!