- Source of earnings is IBD newspaper and WSJ Digest of Earnings
- Only EPS growth vs last year same quarter >100% , EPS>.05 cents and sales >5% growth , needs to be data entered.
What to look for in earnings: To narrow the set of companies to track and trade for this strategy, based on my prior experience, I only track companies whose earnings are up 100% or more quarter over quarter and the earnings should be at least 5 cents. Sales/revenue should be up 5% or more. Doubling of earnings is significant. Few companies meet that criteria. So I put all the stock meeting this criteria in a list. Now what one is looking for is earnings acceleration. IBD will have those stocks with up arrow to indicate earnings acceleration. Besides that I look for price action on that stock by looking at how much they are up in last 65 days or so. I am looking for stocks which have not rallied in anticipation of earnings. Even better is stock which has no analyst coverage and is neglected. Stocks with less than 100% plus earnings also breakout, but to prioritize, I only focus on above 100.
- On second sheet Earnings News, only pre market news which meets above criteria needs to be entered from sources like Marketwatch, briefings, Reuters, etc.
- If you can not fill up all columns like IBD ratings let them be blank, others will fill them in.
- The third sheet is for my comments, where I may highlight few stocks from the list.
- We have enough volunteers. So not looking for more.
- Be patient Skytrader and I will work with you till it gets on auto pilot. There are lot of emails on this flying around, I will respond to all of them later.
Earnings Database Instructions
This is for those who volunteered for this: