Earnings season came to an end yesterday with Wal-Mart’s (WMT) report. It was a very successful reporting period, with the S&P 500 rallying 3.5% throughout the season and the average stock that reported gaining 0.55% on its report date.
We think this season can be characterized as the “comeback quarter”, because many of this season’s biggest earnings success stories were stocks that did horribly on earnings last season.
Below is a list we created of “comeback” stocks — stocks that fell at least 5% on their earnings report days last season and gained at least 10% on their earnings report days this season. Some of the more notable names that are widely traded include TripAdvisor (TRIP), Netflix (NFLX), Twitter (TWTR), Amazon (AMZN) and Biogen (BIIB). Netflix (NFLX) and Amazon (AMZN) are probably the two biggest turnaround stories. Both were close to being left for dead heading into this season. Netflix fell 19.37% on its October earnings report and came into this season dangerously close to a sub-$300 share price. Amazon had already broken below $300 heading into this season after falling at least 8% on each of its prior four earnings reports.
As shown below, Netflix and Amazon both posted huge upside gains following their reports this season — pushing them up towards all-time highs once again. All it took was one quarter to get investors back on board with both of these growth stock stories.
Today we’ll be publishing a detailed summary of the just-completed earnings season. To view the report and get on our actionable research platform, sign up for a 5-day free Bespoke Premium trial today.