Wading deeper into earnings reports reveals growth expectations not living up to expectations

Wading deeper into earnings reports reveals growth expectations not living up to expectations

It’s earnings season, and with anywhere from a few hundred to more than a 1,000 companies reporting their results, this certainly makes for a volatile time with investors shooting first as results hit the tape and asking questions over the quality of those earnings later.

As we navigate the maze of earnings reports to be had in the coming days, we’ll continue to refine our thematic shopping list and look to pounce on opportunities that offer a compelling risk to reward trade off.

In this week’s edition of Tematica Investing:

  • Wading deeper into March quarter earnings finds growth expectations are not living up to expectations. As we’ve said before, it sometimes takes time for the market to react to the fundamentals, but the fundamentals eventually catch up with expectations.
  • While we expect no-action from the Fed’s FOMC meeting later today, expect Wall Street to parse the commentary on the economy and inflation to determine the Fed’s next course of action.
  • Earnings reports for companies on the Tematica Select List are starting to trickle in, and we see no reason to alter our position in AT&T (T) or American Capital Agency (AGNC) shares at this time.
    Checking in on Chipotle Mexican Grill (CMG) shares, we find more patience is required before pulling the gun on this Food with Integrity contender.
  • We’ve got the latest thematic supporting data points that ripped from the headlines around us.
    Finally, we’re re-introducing an old feature called “What We’re Enjoying” and this week it’s the new Echo Dot from Amazon.

Click the link below to download the full report


About the Author

Chris Versace, Chief Investment Officer
I'm the Chief Investment Officer of Tematica Research and editor of Tematica Investing newsletter. All of that capitalizes on my near 20 years in the investment industry, nearly all of it breaking down industries and recommending stocks. In that time, I've been ranked an All Star Analyst by Zacks Investment Research and my efforts in analyzing industries, companies and equities have been recognized by both Institutional Investor and Thomson Reuters’ StarMine Monitor. In my travels, I've covered cyclicals, tech and more, which gives me a different vantage point, one that uses not only an ecosystem or food chain perspective, but one that also examines demographics, economics, psychographics and more when formulating my investment views. The question I most often get is "Are you related to…."

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