If you’re a regular follower of the market, you know that stock price reaction is ultimately what determines whether an earnings report is positive or negative. A company can beat earnings and sales estimates but trade down 10% on the day due to something the CEO said on its conference call. Basically if the stock goes up on the first trading day following its quarterly earnings report, investors treat the report as a positive one. If the stock goes down, it’s treated as a negative report. At Bespoke, we’ve been tracking the one-day price reactions for all stocks that report earnings for the last 15 years! All of this data is included in our Interactive Earnings Report Database (available at the Bespoke Institutional level).
Earnings can obviously be hit or miss, but some stocks out there have been batting 1.000 for the last couple of years. In fact, there’s one stock in the S&P 1500 that has traded higher in reaction to its quarterly earnings reports for the last three years! That stock is Natus Medical (BABY), which has gone up on its last 12 quarterly earnings reaction days. You can see this amazing winning streak by clicking on the thumbnail image below. It’s a snapshot of the ticker “BABY” pulled up in our earnings database.
Along with BABY, there are 10 other stocks in the S&P 1500 set to report earnings between now and the end of August that have gone up on every quarterly earnings report day over the last two years. There are another 19 that have gone up on each of their last six earnings reaction days. All of these stocks are listed in the table below. Perry Ellis (PERY) and Crane (CR) are right behind BABY with 11 straight up days on earnings. Ebix (EBIX) has been up 9 quarters in a row, while TJX (TJX), Tractor Supply (TSCO), and Petterson-UTI Energy (PTEN) are a few of the names up 8 quarters in a row. Other notables on the list include Broadcom (AVGO), Southwest Air (LUV), Aetna (AET), salesforce.com (CRM), and AK Steel (AKS).
If you’re looking for earnings season winners, these stocks have been certainly been knocking it out of the park recently. That being said, because they’re on such long winning streaks, any weakness in their upcoming earnings reports will likely not be treated kindly by traders.