Investmentprofi Sam Burns.
Mill Street Research
Sam Burns is the founder of Mill Street Research, an independent investment research firm.
He has identified 10 stocks that could beat analyst expectations and continue to rise this quarter.
He also reveals four sectors in which he currently prefers to invest.
This is a machine translation of an article by our US colleagues at Insider. It was automatically translated and checked by a real editor. We welcome feedback at the end of the article.
After a dismal 2022, Wall Street expectations were low earlier this year. The consensus was that first-quarter earnings would suffer as lowered earnings-per-share estimates are still out of reach for companies grappling with inflation, higher interest rates and weak consumer confidence.
Instead, the S&P 500 rose on better-than-expected earnings reports. Ohsung Kwon, strategist at Bank of America, wrote in a recent note to clients that all sectors except utilities beat consensus estimates for first-quarter earnings per share, while all sectors beat revenue expectations.
As the second quarter earnings season continues, sentiment has improved again. Bank of America data shows that seven of the 11 S&P 500 sectors are expected to report better-than-expected earnings growth this quarter compared to the first quarter, and Kwon believes earnings for the broader market this year will beat expectations by 3 percent.
Suddenly, Wall Street has higher expectations. And as Sam Burns knows, taking advantage of changing analyst expectations can be a winning investment strategy.