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 2003 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? 

Find Better Stocks

Once you review your current stocks against the Zen Ratings, you will no doubt find some lowly C, D & F rated stocks that should be expelled from your portfolio. The next step is to replace them with better stocks. 

We have lots of great resources on the site to help you do that. But the one I personally use the most is the full list of A rated stocks inside the Stock Ideas section of the website. 

Right now there are 203 A rated stocks on the list. It is pretty easy to screen that down to a smaller collection that best fits your needs. 

See All “A” Rated Stocks > 

(This is a premium feature of the site, but even free members can see the first 5 stocks). 

Using AI to Improve Your Stock Picking 

Join me this Wednesday April 22nd @ 4pm ET for this vital presentation I am doing for the MoneyShow. 

Plain and simple, AI is improving nearly every aspect of our lives. Stock investing is no different. 

However, this presentation is for those who want to leverage the best that AI has to offer while not turning our backs on other sound fundamental investing principles.

Our friends at the MoneyShow are allowing WallStreetZen members to get complimentary access. Just click below now to claim your spot: 

Register Here > 

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.