The earnings calendar has been quiet, and it will remain that way until the second half of the month when the Q1 earnings season really kicks into gear. When it comes to earnings, the 3 month rolling EPS beat rate and guidance spread have pulled back significantly over the past few months. Granted, both of these as well as the sales beat rate remain at levels well above typical levels. As such, there have been a huge number of triple plays over the past three months, 268 of the total 2048 reporting companies to be exact. A triple play is when a company reports better than expected sales and earnings while also raising guidance. Typically, this can be viewed as a sign of fundamental strength for a company.
Looking over those triple plays, the average stock that has reported a triple play over the past three months rose over 3% on its earnings reaction day with 64% finishing the day in the green. That positive performance has tended to continue in the weeks after earnings although there have been some that have recently been consolidating. In the charts below, we show a handful of these. Some like Abbott Labs (ABT) and Perficient (PRFT) have been in short-term downtrends that have brought them back down to support around their 50-DMAs. Others like Analog Devices (ADI), Broadcom (AVGO), and Crocs (CROX) have been stuck under resistance over the past several weeks but have made attempts to break out in the past few days. For all of these, there has yet to be a decided move either to the up or downside.
While the names above have yet to break out of their consolidation ranges, there are a number of recent triple-plays that have successfully managed to break out to the upside. For a recap of those names, make sure to log in. If you aren’t currently a client, sign up for a free trial to one of Bespoke’s research offerings.