As earnings kick into 5th gear expected volatility has us on sidelines, for now
We are waist deep in March quarter earnings with more than 1,400 companies reporting this week — a 40% increase compared to last week. Mixed in that horde are 124 S&P 500 companies (including 2 DJIA components) reporting. By the end of the week that will mean 87% of the S&P 500 group of companies will have reported March quarter results.
As we’ve shared with you thus far, overall earnings expectations for the S&P 500 group of companies has continued to trend lower since the end of 3Q 2015. The expected volatility has us on the sidelines from jumping on new positions . . . for now. But that doesn’t mean we’re not busy sharpening our pencils and getting ready for the right opportunity.
In this week’s edition of Tematica Investing:
- Ahead of its May 9 earnings report, we are adding online pet pharmacy Petmed Express (PETS) to the Tematica Contender List.
- Regal Entertainment (RGC) rides the strong movie box office to beat earnings expectations.
- A Tematica Investing subscriber question opens the door for Amazon (AMZN) shares.
- We’ve got the latest thematic supporting data points that ripped from the headlines around us.
- What did we enjoy this week? The Big Green Egg of course.
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