All About Earnings, Season October 2020: What To Expect
Earnings season might be the most important time of the year for investors in the stock market. It represents the period when publicly traded corporations release their quarterly earnings reports and reveal their latest quarterly performance to the public. In general, earnings season begins about six weeks after the end of a fiscal quarter and lasts for about six weeks.
Earnings season has big consequences for the short-term price of stocks. Depending on whether a corporation’s quarterly earnings meet, beat or miss stock analysts’ expectations, the price of a stock will rise or fall. But earnings season also supplies essential information for long-term traders, because a company’s quarterly earnings report reveals a lot about the fundamental financial health of a company.
We have just entered the earnings season for the third fiscal quarter that ended in September, and companies have begun to release their earnings reports, leading stock prices to rise and fall in accordance with these announcements. But what are some things that investors should keep an eye out for this earnings season? Let’s take a look…
Earnings Season Reveals the Fundamentals
In his recent article on earnings season, Andy Snyder, founder of Manward Press, points out that while it’s likely that 75% of a stock’s movement is based on the economy and the market around it, the other 25% is what really matters for determining winning and losing stocks.
That 25% is what gets revealed during earnings season – the fundamental financial health of a corporation. If a company’s underlying fundamentals are strong, the stock will be too. If the fundamentals are weak, then watch out!
Andy looks to the recent difference in the earnings reports of Bank of America (NYSE: BAC) and Goldman Sachs (NYSE: GS) to see the immediate effects of earnings season. According to him, “Bank of America struck out. Goldman Sachs hit a home run.” (And since it’s also baseball playoffs season, this metaphor is particularly apropos.)
Finally, Andy rightly points out that “earnings season is the prime time to do your homework and set yourself up for strong, market-crushing returns.” So make sure to be a good student and do your investing homework.
The Blockbuster Earnings Season Kickoff
So the big question is this: How can an investor like you make big money during this earnings season? Well, look no further than the Blockbuster Earnings Season Kickoff event. In my colleague Rob Otman’s review of this special earnings season event, he details the free video event led by Investment U Income Expert Marc Lichtenfeld.
Marc has been fine-tuning a strategy to better identify the winners, while avoiding the losers, of earnings season. And he’s confident that he’s found the best way to profit off of what might just be the biggest earnings season of our lives.
As Rob explains, “Behind this confidence is a proprietary system of Predictive Profits. In the second quarter, it identified 25 stocks as likely earnings winners… and of those, 22 went on to beat earnings. That’s an amazing 88% success rate.”
Now that you have a handle on what’s at stake, you are in a great position to profit off the fundamental quarterly reports of the biggest stocks in the world. Don’t miss Marc Lichtenfeld’s presentation, and make sure you are ready to unleash all the profit potential of this wonderful time of the year.
About Brian M. Reiser
Brian M. Reiser has a Bachelor of Science degree in Management with a concentration in finance from the School of Management at Binghamton University.
He also holds a B.A. in philosophy from Columbia University and an M.A. in philosophy from the University of South Florida.
His primary interests at Investment U include personal finance, debt, tech stocks and more.