Wednesday, July 14, 2021

High expectations for earnings season

Mid-week market update: As the market enters into Q2 earnings season, FactSet reported that consensus estimates are calling for an astounding 63.3% YoY EPS growth.

While that growth estimate appears to be a high bar, investors have to keep in mind the low base effect. As well, the historical record shows that actual growth has tended to exceed estimates. In other words, the bears shouldn't count on earnings disappointment as a catalyst for a price downdraft.

The full post can be found here.

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