Earnings season is a great time to dive into stocks because there’s a certain amount of certainty that comes from all the related discussions.
This is when our expectations about the just-concluded quarter are met, exceeded or missed. It’s also when we get a somewhat clearer picture about the next quarter and at times, also the year. So jumping into stocks that have announced resounding beats and encouraging outlooks are a no-brainer.
It also pays to hang around a couple of days to see what impression brokers have come away with. And the best way that is captured is in the estimate revisions. So if management has good things to say about the company and its future and brokers come back with higher estimates, you know for sure that good things are going on.
But since you’ve waited for the broker reports, some of the good news is likely to