From my perspective, we can't hear the word "better" enough in the weeks ahead.
"Better than expected."
These are winning phrases that can be used by market pundits when they compare a company's quarterly financials against Wall Street's forecasts. Additionally, terms like these can help investors feel hopeful about potential market behavior.
One way to measure "better" is the number of Standard & Poor's 500 companies that revise their earnings estimates prior to reporting earnings. As you can see in the accompanying chart, fewer companies have revised their estimates for Q12023. So in this instance, fewer revisions lower is better than the prior two quarters.
We’re a bit of optimists when it comes to creating an investment strategy that fits your goals, time horizon, and risk tolerance. So we’ll be collecting all the betters we come across in the coming weeks.
“Better” Is the Best Word on Wall Street
May 01, 2023|