Relative Strength and Positive Surprises
Relative price strength helps to highlight stocks for which the market has a growing affection. Here, we highlight stocks with strong and improving price momentum coupled with recent positive earnings surprises and upward revisions in earnings estimates.
The quarterly earnings reporting season allows investors to see whether the expectations of the majority of analysts have been correct, or if adjustments are necessary.
The stocks that made this issue’s First Cut are domestic, exchange-listed companies that have had a positive quarterly surprise since the beginning of April as well a positive surprise for their prior quarter. These companies are expected by analysts to have positive earnings for their current fiscal year. Also, no analysts have lowered their near-term quarterly or annual earnings estimates during the past month. The First Cut table lists the percentage by which actual reported earnings topped the consensus expectation. The table also shows the amount by which analysts have recently adjusted their near-term expectations.
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