The Best (and Worst) Earnings Surprises Right Now

Shah Gilani|April 27, 2023

We’re about midway through earnings season for Q1 2023, and markets are trying to trend higher, driven by a lot of positive reports from the big tech names that have been pushing the rally we’ve been seeing these past few weeks.

I’ll admit, I’m still a bit cautious myself, because if you look outside of those twenty or so stocks that are moving the market, you’ll see a much scarier picture. Not only are we lacking in the broad support necessary to keep the rally sustainable, but a lot of stocks are taking a dive even as indices are climbing.

If the end result is an overall earnings recession, and that’s compounded by an economic recession, things could go bad very fast. I wrote about just how bad in last week’s Total Wealth; check that out if you haven’t already.

But for the moment, there are a lot of opportunities out there to make some money following the market’s momentum. To that end, I wanted to look at some of the big names that have just reported and show you what I watch for when I’m trying to find the best post-earnings plays.

Here’s the thing: a great company isn’t always going to get a big pop even if they come in above consensus estimates for EPS (earnings per share). Context is key to put their numbers in perspective – did they beat estimates because they’ve had a dismal year? Are profits keeping pace with earnings growth? What’s their debt load look like? You need the big picture to make the best decisions.

So here’s my breakdown of the stocks you submitted this week, both the best buys and the stinkers. Keep an eye out in particular for my take on General Electric Company (GE) – usually a contender for “most boring stock on the S&P 500,” it’s got some real tailwinds lately that make it worth playing.

Here’s the video…

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Earnings season is taking up a lot of space in the headlines. It’s understandable, but savvy investors know to look past the mainstream media for some of the best opportunities out there. A huge land grab taking place right now in the richest oil-producing region of the United States, with trillions of dollars in play, and it’s flying under the radar of most outlets.

Garrett Baldwin, executive producer of Money Morning LIVE, has his finger on the pulse of this buyout boom, and has prepared a full briefing on all the all the companies investors need to be targeting right now.

You can check it out here.