Bespoke Invest blog reports this earnings season was the worst in terms of stock reaction, since at least 2000.
The average one-day change in response to earnings for the 2,150 companies that reported was a pathetic -1.92%. The second worst earnings season came in Q3 2008 when the average stock declined 0.70%, so this season was more than two and a half times as bad as the previous worst earnings season. Sixty-percent of companies that reported went down in response to their reports, and nearly 30% went down more than 5%! That's an astonishing number. Eighty-three companies that reported lost 20%, or a fifth of their value, on the day of their earnings reports.
Now of course much of that is because we do not live in a vacuum and the market has had a rough period during the heart of earnings season. But it does provide opportunity. Usually when a stock reports a great quarter, it gaps up and is off to the races in the ensuing months. But a wicked market can bring those names back to earth, offering a chance for those who hate to chase stocks a more reasonable entry point. Here are 33 stocks that went up at least 18% on their earnings day:
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Of course for those who have much more patience and like 'value' there is also the lovable losers list - here are 31 companies who lost at least 30% of their value post earnings report. With at least some of these, once they create a longer term base there could be opportunity as well.
Monday, August 22, 2011
Bespoke: The Worst and Best Stock Price Reactions to Earnings this Quarter
Best Of FMMF
- 1: Warren Buffet Piles on Europe
- 2: [Video] Jim Chanos Returns from Europe, Even More Bearish on China
- 3: A Chart to Open Our Eyes - Staggering Changes by Multinationals in Employment Behavior 00s vs 90s
- 4: Futures Blasted on Dexia Woes... and Poor Preliminary China Data
- 5: Market Working to Worst Thanksgiving Since 1932
- 6: Et Tu, German Bonds? Poor Auction Raises Eyebrows