Very Loud Earnings Whispers for Your Stocks

Earnings season is a vital test for all stocks. 

You either wake up in the morning to a glorious beat, with shares racing higher. 

Or you bemoan the fate of a painful loss with shares tumbling down 10-20% or more. 

Investors have long sought a trusted “earnings whisper” to better predict how things will turn out BEFORE it's too late. 

Gladly the Zen Ratings proves to be an excellent earnings whisperer leading to more beats and less misses. And now is the perfect time to understand how this works to review your stocks before it’s too late. 

At the simplest level we can say that the most fundamentally sound companies are more likely to beat earnings.

This is good news given the complete 115 fundamental factor analysis the Zen Ratings does on every stock, which helps explain this consistent outperformance:

There is simply no way that you can have this level of outperformance going back to 2006 without being successful during earnings season. 

Obviously not all 115 factors are equally beneficial in providing the necessary earnings whisper. 

Digging into the specifics, we find that the 22 factors associated with our Growth component rating are the best at locking in on companies likely to beat earnings. 

Too much of the conversation on growth is about the pace of earnings growth in the future. Indeed we all are more attracted to stocks likely to grow earnings 30% a year versus something more tame like 5%. 

But academic studies show that those high growth companies are actually the riskiest as it is nearly impossible to keep up that torrid growth pace in the future. Once things slow down the PE contracts as the share price implodes. 

The REAL key to earnings beats is to find a company that is consistently growing. 

That is the focus of our Growth ratings. 

Not just earnings growth, but also consistent growth across: 

• Revenue
• Cash Flow
• Profit Margins
• EBITDA

The more consistently this growth happened in the past…and across multiple growth measures…the more likely it continues in the future. 

And the more likely you wake up the morning of their next earnings report to find another beat and raise on your hands with shares flying higher. 

This behooves every investor to make sure that their stocks stack up on this vital Growth component of the Zen Rating. Just go to WallStreetZen.com and use the search box to review your stocks 1 by 1. 

Start here >

What to Do Next? 

Discover the 7 Best Growth Stocks

Plain and simple, the above article proves that the best stocks coming into earnings season are the ones with the highest Growth scores from our Zen Ratings model. 

That is exactly what we created in the coveted “Growth” portfolio inside of Zen Strategies. 

Every day our quant model recalculates the data to share the 7 best growth stocks. The results speak for themselves: 

+31.27% average annual return

+13.49% the past 1 month (best performance of any portfolio inside Zen Strategies). 

To see the Growth portfolio, and all 11 market beating portfolios we have created then check out Zen Strategies here. 

Just to be clear, you can see every aspect of the site including performance except the top 7 stocks for each portfolio. 

That is just reserved for members. Perhaps it's time you finally became a member to enjoy the maximum outperformance found in the Zen Ratings. 

The best way to determine if that is the right decision for you is to watch my most recent presentation. Just click the link below. 

10 Minutes a Month to Beat the Market > 

Wishing you a world of investment success!

Editor-in-Chief of WallStreetZen

Steve Reitmeister…but everyone calls me Reity (pronounced “Righty”)

Editor of the Zen Investor

Want to get in touch? Email us at news@wallstreetzen.com.