The start of Q2 earnings season is about a week away, so now is the time to do your pre-earnings season homework. I’m not sure what that means for everyone else, but for me it’s all about evaluating relative strength. Which companies have shown the best relative strength? These are the companies that I think will give us the biggest positive revenue and earnings surprises.
I’ll start with one airline, Delta Airlines (DAL):
Given the look of this chart, especially the HUGE absolute and relative rallies and the rapidly rising AD line, I would be shocked if DAL reported anything negative. I expect both revenue and earnings per share to increase significantly, and I wouldn’t be at all surprised if DAL raised its quarterly and annual guidance. Will this translate into huge upside potential for the stock price? Well, that remains to be seen.
Transportation stocks ($TRAN) in general are exploding and this index shows very strong performance links to the S&P 500. I’ll be covering the state of transportation, the S&P 500 and many other areas of the market in our report. The Bulls-Eye Forecast: Mid-Year Update event will be held on Thursday, July 6 at 7:00 pm ET. This is a FREE event, but seating is limited. CLICK HERE for registration and seat reservation! If you’re unable to attend the live event, we’ll send a time-stamped recording to everyone who registers.
I hope to see you on Thursday evening!
Happy trading!
Tom Bowley, Chief Market Strategist, EarningsBeats.com
Tom Bowley is the chief market strategist of EarningsBeats.com, a company that provides a research and educational platform for both investment professionals and individual investors. Tom writes a comprehensive Daily Market Report (DMR) that provides guidance to EB.com members every day the exchange is open. Tom has been bringing technical expertise here at StockCharts.com since 2006 and also has a basic public accounting background which gives him unique skills to tackle the US stock market.
