Our Q&As are emailed in our Saturday Morning Report, find the answer to this question below.
Hi MM, With reporting season underway, companies that miss expectations are being severely hammered. Do you have your eye on any beaten up growth/income stocks that could turn around quite quickly? Cheers Peter
Hi Peter,
Basically growth/income stocks just about encompass the whole market!
One thing to be very conscious of is the ASX200 may have posted a slight new all-time high this week but we aren’t in a market where selloffs are regularly being bought aggressively. Without quantifying the statistics MM is confident that companies that “miss” during earnings season are underperforming the market over the coming months, hence, any bargain hunting should be extremely selective.
A great example is Cochlear (COH), previous market favourite, shown below which tumbled last week after missing profit forecasts during the increasingly volatile earnings season. Here we are on Friday, six trading days later, and even in a market testing new highs and COH is still plumbing fresh 3-year lows. The same was true with CSL which has failed to bounce.
This trend if being driven by a higher proportion of momentum based investing that relies on earnings and price trends. The end result is stocks are generally taking longer to recover, so buying the dip is more often than not, the right approach.
Take a free trial.
No payment details required.
Forgot password? Request a One Time Password or reset your password
One Time Password
Check your email for an email from [email protected]
Subject: Your OTP for Account Access
This email will have a code you can use as your One Time Password for instant access
A link to create a new password will be sent to the email address you have registered to your account.
Hi, this is only available to members. Join today and access the latest views on the latest developments from a professional money manager.
Our Smart Phone App will give you access to much of our content and notifications. Download for free today.
