The Power of Accelerating Earnings Beats
So what is an accelerating earnings beat? Its when a company starts beating estimates by an ever-widening margin each quarter for more than one quarter.
It tells us their is an underlying positive trend that analysts and market participants are not fully appreciating yet. And it often leads to big moves higher for the stock.
One of our trading setups in the Daily Alert beat earnings estimates by nearly 300%. The prior quarter they beat by over 100%. And over 50% the quarter prior to that.
Not only did this stock have accelerating beats but was coming out of a bullish cup with handle pattern when we featured it.
Despite a market downturn, this stock surged nearly 10% higher within 3 days after we featured it! As the overall market was in correction mode.
It kept soaring and moved 78% higher within several weeks of being featured in our newsletter. As a trader or investor you need to take notice when a stock has accelerating earnings beats.