Earnings Season Update and How to Build Wealth the Smart Way Earlier this week, I caught myself daydreaming about what it would be like to have $215 million. I was driving on I-95 near our Baltimore offices when I saw one of the billboards for the Powerball lottery. It’s easy to get lost in the fantasy of having that much money and imagining how your life would change. New houses, new cars, exotic vacations … and definitely no more work. 
(credit: WoodsysPhotos) Of course, I don’t play the lottery. The odds of winning are about one in 300 million, and to me that sounds like wasting money. To put those odds in perspective: - The odds of dying from a shark attack are 1 in 3.7 million, according to the International Shark Attack File.
- The odds of dying from hornet, wasp or bee stings is about 1 in 54,000, according to the National Safety Council.
I don’t worry about those remote risks, and the odds of winning the lottery are even longer! Sadly, too many investors treat the stock market like a lottery – putting money into “cheap” moonshot stocks that generate no earnings in the hope that they’ll get lucky, pick the right one, and retire tomorrow. While that strategy might work for the luckiest of investors, if you want to put the probabilities on your side, you need to know about the Iron Law of the Stock Market… | Recommended Link | | | | An ultra-rare pattern has emerged in the markets that has only appeared three times going back 125 years. Last time this pattern appeared, backtests show it triggered certain tech stocks to soar thousands of percent over time… while devastating millions of Americans who failed to prepare. Don’t miss our urgent briefing on Thursday, February 27th. Click here to secure your spot. |  | | The Best Road to Growing Your Wealth Right now, we’re finishing one of the most pivotal times of the year when companies report their quarterly results. Market legend Louis Navellier has always called earnings season “my favorite time of year.” That’s because he focuses on fundamentally strong companies … the ones that are expected to post superior earnings. And that’s what’s at the heart of the Iron Law of the Stock Market: If a company massively grows its sales and earnings, its stock price will grow, too. Yesterday, Louis provided an earnings season update to his Growth Investor subscribers. The majority of stocks are beating analysts’ earnings expectations, including our own Growth Investor stocks. According to FactSet, of the S&P 500 companies that have posted results, 76% have exceeded analysts’ earnings estimates and 62% have topped analysts’ sales forecasts. If we stay focused on companies with accelerating earnings and sales momentum, as well as positive analyst revisions, the vast majority of our stocks will knock it out of the park and rally strongly. And that has been the case during the fourth-quarter earnings season. We’ve had 40 Growth Investor companies release quarterly results so far, with 28 of these companies topping analysts’ earnings estimates. Our stocks have achieved an 8.5% average earnings surprise, versus the S&P 500’s 7.3% average earnings surprise. | Recommended Link | | | | Louis Navellier has identified a mathematical pattern that appeared before Microsoft, Dell, Google, and Nvidia exploded. Now it's showing up in a small chip maker. Get the ticker free by clicking here. |  | | No One Bats 1,000 – But Data Provides the Edge Of course, no strategy is perfect. Some of Louis’ recommended stocks missed estimates and saw their prices pull back. But the data provided during earnings season is what provides the crucial input for Louis’ Stock Grader system. At the end of every earnings season, Louis uses this data to refine his recommendations, ensuring that he remains invested in the “crème de la crème” of the market. Next week, market leader – Nvidia (NVDA) – reports earnings as a sort of grand finale to this earnings season. Growth Investor subscribers can use Louis’ Stock Grader tool to see how Nvidia rates any time. Below is a Stock Grader sample complete with a price chart from the last two years. 
In the picture above, you can see the horizontal-colored bands provide a grade history over the last two years. This is the system Louis used to recommend NVDA in 2019 … before it went on to gain more than 3,000%. Another benefit of Stock Grader is the ability to compare stocks with its Analyze feature. Here is NVDA compared to other semiconductor stocks. 
Growth Investor subscribers can run their own stocks through the system and then save those picks to track their grades over time. Recently, Louis' Stock Grader system flagged a remarkable improvement in one semiconductor stock's fundamentals. The company's grade jumped from D to B, signaling potentially significant upside... You can learn more about this opportunity here. It can be fun to fantasize about winning the lottery and getting rich quick. But, investing using the Iron Law of the Stock Market – investing in stocks with growing sales and earnings – is likely to provide a higher probability outcome. Enjoy your weekend, Luis Hernandez
Editor in Chief, InvestorPlace | 
No comments:
Post a Comment