Outperform the Market
Harness the power of earnings results vs. investor expectations to optimize your portfolio!
The Earnings Whisper Investor Service is based on these fundamental truths:
- The one consistently proven stock market anomaly over the past 50+ years has been the Post-earnings Announcement Drift (PEAD).
- PEAD occurs because it changes investor sentiment.
- The stock market never changes because human behavior never changes.
By combining these truths, we provide tools to identify the occassions where results differed the most relative to expectations, and giving you the opportunity to significantly outperform the overall stock market.
Unlock the power of earnings-driven investment strategies with our Investor Service, anchored by the innovative Earnings Whisper Grade. This unique grading system evaluates every earnings release with consensus estimates, ranking them from F to A+ based on the quality of earnings relative to investor sentiment.
In simple terms, it's an intelligent approach rooted in data: since the end of 2002, companies awarded with passing grades have consistently outperformed the overall stock market in the following quarter, while those with failing grades have underperformed.
Investing is undoubtedly a complex endeavor with a multitude of factors influencing stock performance at any given moment. Yet, there remains a strong and statistically robust edge in favor of investing in companies that report strong results when investors were expecting the contrary, and vice versa.
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Systematic Reallocation - The Snowball Effect
The graphic at the top shows the average results by grade from the start of our data in December 2002 and includes backdated results. We first started providing the Earnings Whisper Grade in 2015 and in a real-world environment, the grades have continued to be a reliable indicator of which stocks will outperform in any given quarter and which will underperform. While it’s important to remember that past performance doesn’t ensure future returns, the track record since 2015 of regularly reallocating into those stocks most likely to outperform speaks for itself.
If you had started an equally weighted portfolio with a $100,000 investment at the start of 2015, targeting only those companies we reported as having A+ Earnings – buying at the open following the announcement and selling just before its next earnings release – your portfolio would be $692,500 as of June 16, 2023.
That’s because the strategy puts you in the sweet spot between passive investing and systematically reallocating your investment into the stocks most likely to outperform over the next 13 weeks. This is the snowball effect in action, and it’s a powerful benefit of using the Earnings Whisper Grade.
Investors Also Get
The Whisper Report ®
Every week, we conduct a comprehensive analysis of the current market environment. Our process begins with a macroeconomic and technical overview, providing a top-down perspective of the market. Following this, we shift our focus to a bottom-up approach, where we examine the leading companies set to announce their earnings. This dual perspective ensures a thorough understanding of the prevailing market conditions.
Earnings Whisper Sentiment Index
We utilize a comprehensive, top-down approach to assess investor sentiment, leveraging data sources from our proprietary investor surveys to overall short interest metrics. This methodology aids in determining the most opportune times to buy and sell stocks, providing a data-driven edge in market participation.
Expanded Earnings Calendar
You'll get access to an expanded set of earnings calendars with critical data such as implied volatility and average price moves, charts in a single glance, a sentiment heat map of upcoming earnings, and weekly or monthly views - all to help you plan ahead and anticipate strategic decisions ahead of time.
The role of fundamental trends often outweighs technical trends when determing a stock's performance. However, it is important to remember that ultimately, it's the price that pays. Understanding this balance between fundamental analysis and market pricing is key to profitable investing.
Identifying when short interest in a stock has reached its peak is of significant importance for investors. This peak often indicates a point of maximum pessimism, where bearish sentiments have taken hold and most of the negative news has already been priced in. At such a point, the stock may be undervalued, presenting potential buying opportunities. Moreover, it creates the conditions for a short squeeze, where any positive catalyst can cause short sellers to cover their positions en masse, driving the stock price sharply upward.
You'll get additional features, such as an expanded watchlist for your dashboard and data downloads. We provide detailed earnings and guidance information and give an extensive history of the company's past results. Plus, comparisons with peers, option details, and more.