We keep track of every single earnings report throughout the quarter so we can continuously monitor emerging trends in things like beat rates and price reactions.  So far this earnings season, the average stock that has reported has gained 0.13% on its earnings reaction day, which is the first trading day following a stock’s earnings report.  (For a stock that reports in the morning before the open, its earnings reaction day is that trading day.  For a stock that reports in the afternoon after the close, its earnings reaction day is the next trading day.)

The chart below only shows sectors where more than 10 stocks have reported earnings this season.  Of the sectors shown, two stand out to the upside and two stand out to the downside.  Energy and Materials stocks that have reported earnings this season have been reacting positively.  The average Energy stock has gained 0.86% on its earnings reaction day, while the average Materials stock has gained 0.81%.  Consumer Staples and Health Care stocks, on the other hand, have been selling off on earnings this season.  The average Consumer Staples stock that has reported has fallen 1.61% on its earnings reaction day, while the average Health Care stock has fallen 1.28%.

Hundreds more companies will report their quarterly numbers this week, so we’ll have a much bigger sample size by week’s end.

Want to see more research like this?  Click here to start a no-obligation two-week free trial.

sectors0130

Print Friendly, PDF & Email