The First Cut: Momentum Stocks With Positive Earnings Surprises

    by John Bajkowski

    The First Cut: Momentum Stocks With Positive Earnings Surprises Splash image

    The First Cut is designed as a starting point for investors. Each issue we list the top 30 stocks that pass relatively simple screens of interest to individual stock pickers. AAII’s Stock Investor Pro screening software is used to generate the First Cut listing.

    When the markets are volatile, it can be illuminating to observe companies that are surpassing investor expectations and rewarding investors with above-average price strength. The quarterly earnings reporting season allows investors to see whether the expectations of the majority of analysts have been correct, or whether they need adjustment. Services such as I/B/E/S, Thomson-Reuters, First Call, and Zacks provide consensus earnings estimates by tracking the estimates of thousands of analysts.

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