Dear EarningsBeats Community Member.

As a reminder, On Monday, August 12, Tom Bowley, Senior Technical Analyst, StockCharts.com, will be joining me in a webinar where he will be discussing the methodology behind selecting his Top 10 Stock Picks for his Model, Aggressive and Income portfolios.. Then the following Monday, August 19, Tom will be unveiling this top 10 picks for the three portfolios, 30 stocks in all. These events are exclusively for EarningsBeats community members like you. There is no need for you to register for the webinar and you will be sent room instructions prior to the 4:30 pm eastern start. Also, both webinars will be recorded for those of you unable to attend the live event. More below.

At your service,

John Hopkins
EarningsBeats.com

Model Portfolio Surges To Its Highest Level; Leaves S&P 500 In The Dust

Thursday was a huge day for my Model Portfolio and it widened the gap between its performance and that of the benchmark S&P 500. One question that has come up over and over again about my strategy with these portfolios (the Aggressive and Income portfolios are my other two) is this - Why have you decided to hold into earnings? Well, the primary reason I've changed my mind is that these portfolios hold 10 stocks into earnings, not just one or two. So the risks are somewhat offset, figuring that some will move higher and some will move lower. Also, you have to keep in mind that Wall Street is accumulating these stocks because they've visited these companies' management teams and they like what they've heard. Therefore, the expectation is that these companies will deliver solid quarterly results. While it's not a certainty that every company will, odds are that the majority will report great results. But the reaction to earnings reports is the tricky part. All 10 Model Portfolio stocks have now reported their quarterly earnings and the next day reactions have been as follows:

ROKU: +20.86%
MELI: +12.15%
SHOP: +7.40%
LHX: +3.80%
CMG: +3.74%
MSCI: -2.29%
GPN: -2.39%
WCN: -2.62%
GDI: -5.34%
AMD: -10.10%

Of these 10 stocks, 7 posted revenues and EPS that beat Wall Street consensus estimates. 2 matched EPS expectations (AMD and WCN) and 1 missed revenue expectations (GDI). Every other stock beat top and bottom line estimates. That's how you outperform and it happens because we do our homework. Did these stocks soar after earnings? Well, ROKU and MELI did, but 5 were higher, 5 were lower in their stock price reactions the day after earnings. We're not getting lucky, we're simply benefiting from companies with strong fundamentals and strong technicals. It's a relative strength strategy that is working. Here's the performance of the Model Portfolio since its inception on November 19, 2018:

Model Portfolio: +48.96%

S&P 500: +9.19%

That's for the past nine months. There is no crazy trading intraday. You buy 10 stocks equally-weighted and you hold them for 3 months. Then you sell them and add the next 10 equal-weighted stocks based on the same strategy and hold for 3 more months.

On May 19, 2019, I was encouraged to start an Aggressive Portfolio and Income Portfolio, which I did. Here are the 3 portfolios vs. the S&P 500 since that date:

Aggressive Portfolio: +19.85%
Model Portfolio: +14.47%
Income Portfolio: +7.03%

S&P 500: +2.75%

These portfolios are crushing the S&P 500 and it's not even close. I will be joining John Hopkins of EarningsBeats.com for a webinar on Monday, August 12th to discuss these portfolios, their strategies, results, and much much more. You don't need to register. It's a FREE event and the entire EarningsBeats.com community is invited. It's a simple "thanks for your support" webinar and one that I think you'll really enjoy!

I hope to see you there!

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Dear EarningsBeats.com Community Member,

Webinar Announcement!

First, I'm excited to provide you with specific details of Tom Bowley's upcoming "Top 10 Stock Picks Preliminary Webinar" that will take place next Monday, August 12, 4:30 pm. This is a FREE event that you will be invited to attend as a member of the EarningsBeats.com community. There is NO NEED for you to register for this event as you will be sent room instructions prior to the start of the webinar. The webinar will also be recorded for those of you unable to attend the live event. Click here to learn what will be covered.

You won't want to miss this one!

Take your losses when necessary

We issued a trade alert on Cisco, a company on our Strong Earnings ChartList, to our members on July 24 as follows:

Entry Price: $57.15
Price Target: $63
Stop loss: A close below $55.50



The stock never got going like we thought it would and hit the stop loss level on July 31 resulting in a loss of 3%. Then the next day it recovered to $56.89 before closing slightly lower for the session. But within two days it had fallen to $50.94, another 8% from our original stop loss. Thus it serves as a reminder that even though it can be painful to take a loss it can get much worse if you don't remain disciplined.

At your service,

John Hopkins
EarningsBeats.com

Dear EarningsBeats Community Member.

Save the Dates!

We're now exactly two weeks from our Top 10 Stock Picks webinar, scheduled for August 19, where Tom Bowley of StockCharts.com will unveil his top 10 Model, Aggressive and Income portfolios. These have become extremely popular events so we have two dates for you to save.

To prep the EarningsBeats.com community, we will be having a Sneak Preview event on Monday, August 12. This will be a FREE event that you will be invited to attend. During this webinar, Tom will describe the methodology behind his Top 10 Stock Picks and will discuss results to date - Model from November 19, 2018 up until the event and Model, Aggressive and Income results from May 19 up to the date of the event. You WON't want to miss this event! Then, the main event will take place on August 19. So mark your calendars and we'll keep you posted.

At your service,

John Hopkins
EarningsBeats.com

Signs of Weakness

I spend a lot of time here on EB Digest, my blogs at StockCharts.com, MarketWatchers LIVE, etc. discussing how to pick relative strength winners, especially those that have excelled on a fundamental basis as well. I think it's just as important to know when a stock isn't working and when we should bail. Let's take Network Appliance, Inc. (NTAP) as an example:



Hopefully, you can see the difference between a stock that is outperforming and one like NTAP that is badly lagging. Yes hindsight is 20/20 and we can see that NTAP took a big hit on Friday after issuing a revenue warning on Thursday afternoon. But this wasn't a shock to Wall Street. They've been selling NTAP for months. It shows up quite clearly in the relative strength charts above. Computer hardware stocks ($DJUSCR) were rallying off the June low, outperforming the S&P 500. NTAP was not rising at all, despite its peers benefiting from a strong industry group run. That should tell us something. If it doesn't, then we end up holding, listening to the warning, and getting absolutely clobbered.

As a final note, in its prior quarter, NTAP reported revenues and EPS that fell short of consensus estimates, so the stock was not on my Strong Earnings ChartList. That keeps me from trading a stock like this.

A long time ago, I heard a Wall Street adage, "there's never just one cockroach in the kitchen". Relative weakness in NTAP shares were warning us of another cockroach and we saw it.....on Thursday after the bell. Call an exterminator.

Happy trading,

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Dear EarningsBeats Community Member:

I want to devote today's Market Digest to this past Monday's Q2 Earnings Season webinar because it was THAT GOOD! Tom Bowley absolutely hit it OUT OF THE PARK! We had a full house (apologies to those of you who were unable to gain access to the room) and are in the process of expanding our room capacity for our next BIG event on August 19 when Tom unveils his Top 10 Model, Aggressive and Income stocks. You do NOT want to miss that one.

In addition to discussing the success of his Model, Aggressive and Income portfolios, Tom discussed the methodology underneath the stock selections. Then later in the webinar Tom discussed 20+ companies that recently reported earnings that should be on everyone's radar list. Next, Tom discussed a number of companies that will be reporting earnings in the very near future that could beat expectations and possibly gap up higher. Some potential great opportunities. The good news? Even if you were unable to attend the live event it was recorded! So I want to share the link to the webinar with all of you:

https://www.earningsbeats.com/public/Q2-2019-Earnings-Season-Webinar-Recording.cfm

I want to point out that I mention during the webinar an annual special that attendees could lock in by Midnight Monday. Since many of you were unable to attend the live event we'll honor the annual special for the next few days. Hard to beat!

At your service,

John Hopkins
EarningsBeats

Dear EarningsBeats Community Member:

It's webinar day! That means Tom Bowley of StockCharts.com will join me as we conduct our Q2 Earnings season webinar today at 4:30 pm eastern. Check out Tom's article below and the sign up special being offered to our EarningsBeats Digest members like you.

At your service,

John Hopkins
EarningsBeats.com

Defense Industry Shines

The defense industry ($DJUSDN) has been hot. Over the past three months, it's been one of the top 10 industry groups in terms of performance. It's broken a relative downtrend as Wall Street began pouring money into the group. They began sensing that companies in this space would deliver blowout results and we've been seeing it. Just over the past week or so, Northrop Grumman (NOC), Lockheed Martin (LMT), and Raytheon (RTN) all posted quarterly results ahead of expectations. My favorite stock in the group, Kratos Defense & Security Solutions (KTOS), is likely to post blowout results. We have seen accumulation since May, when KTOS was added to my Aggressive Portfolio. Since that time, KTOS is one of five Aggressive Portfolio stocks that has gained at least 20%. There's a reason for it and we're likely to find out that reason when KTOS reports its results in a couple weeks. Here's a current look at the chart:



The relative strength is off the charts, no pun intended. Every quarter we find gems like KTOS. Tonight, during the Q2 Earnings webinar, I plan to discuss my strategies in developing my 3 portfolios. In addition, I'll give you a sneak preview into several of the best Q2 earnings reports that have been released thus far. I'm already zeroing in on a few beauts! We still have 3 weeks until the August 19th "Top 10 Picks" webinar when my latest stock selections for each portfolio will be announced. But that doesn't mean we can't be trading companies right now that are being accumulated and demonstrating excellent relative strength.

Happy trading!

Tom Bowley
Sr. Technical Analyst
StockCharts.com

EHTH Scores Big

In Monday's EarningsBeats Digest, I looked at Cadence Design Systems, Inc. (CDNS), which I pointed out was likely to post solid earnings based on how it had been trading relative to its software peers. They proceeded to beat both revenue and EPS estimates. After an initial opening pullback, CDNS charged back, setting a new all-time high this week on both absolute and relative terms. It remains a leader.

Last night, eHealth, Inc. (EHTH) set up in a very similar manner. Although it had pulled back over the past couple weeks into its earnings report, its leadership remained unquestioned in the life insurance group ($DJUSIL).

Check out the chart:



Care to guess what happened last night? It was another blowout earnings report by EHTH, which was up 12% after hours. EHTH was my Model Portfolio's biggest quarterly winner since its inception in November 2018. EHTH gained roughly 85% in 3 months (from November 19, 2018 to February 19, 2019) to kickstart what's been a powerful first year campaign. My Model Portfolio has more than quadrupled (!!!) the S&P 500's 11% gain in just 8+ months and it's because of trading ONLY the best stocks within solid industries - just like EHTH. When you invest in leaders, you invest your money more wisely.

On Monday night, I will be unveiling the stocks you need to be trading over the next quarter. These are companies that have already reported excellent results and Wall Street can't get enough of them. They'll lead your portfolio higher over the next quarter. Want to be armed with the best trading candidates? Join me on Monday for EarningsBeats.com's Quarterly Earnings Webinar. You'll be glad you did!!

https://www.earningsbeats.com/public/Earnings-Season-Trading-Candidates-Webinar.cfm?ref=ebd

Happy trading,

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Dear EarningsBeats Community Members.

The earnings floodgates will open this week and continue for the next several weeks as thousands of companies report their numbers. Already last week we heard from some large market cap companies with mixed results with the jury still out until we hear from more.

Here's one company set to report tonight that should be solid.

Cadence Design Systems, Inc. (CDNS) has been one of the best performing stocks of 2019. It's been a leader among software stocks, which in turn has been one of the best industry groups the past couple years. I fully expect to see a solid earnings report after the bell today. Of course, the issue will be....has the excellent report already been built into the price? Here's a look at its performance:



Holding into earnings reports is a personal decision. My opinion is to avoid it as the risk is too great. However, if I were to do it, I would only consider it if a company was a leader in a leading industry group. I believe your odds are much higher holding stocks in those situations. It's clear to me that CDNS and its management team is well-respected among Wall Street firms. I'd look for very strong earnings results tonight.

Happy trading,

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Earnings season is now underway with some heavyweights already reporting their numbers. We're going to hear from a number of multi-billion market cap companies this morning and then after the bell we're going to hear from one of the FANG stocks as Netflix posts its numbers. IBM will post its numbers as well. These are highly visible companies that could help to set the near term tone for the overall market.

CTAS comes through as expected

In my ChartWatcher's article over the weekend I featured two stocks that I felt would report solid numbers that could lead to higher prices. In case you missed the article, here is a link:

https://stockcharts.com/articles/chartwatchers/2019/07/two-stocks-setting-up-to-report-blowout-earnings-next-week.html

One of the stocks discussed was Cintas Corporation (CTAS), a $25 billion market cap company, and as expected they came through with strong results with the stock rising by almost 6% after the bell last night. It just goes to show you that the company's relative strength was a predictor of a solid quarter which is exactly what happened.

The other stock discussed was Danaher (DHR), a $100 billion market cap company, that will report its earnings before the bell this Thursday. There's never any guarantees that a stock will rise (or fall) once its posted its numbers but the chart is showing that Wall Street has high expectations and we'll soon see if they are correct.

At your service,

John Hopkins
EarningsBeats

Dear EarningsBeats Community Member.

One down and thousands to go as Citigroup posted its numbers this morning and as corporate America gets ready to reveal earnings results over the next several weeks. Expectations could be higher than many expect, witness record highs on all of the major indexes just as earnings season begins. We should have a good idea if the market is satisfied with results after we hear from some of the most visible companies within the next few weeks.

At your service,

John Hopkins
EarningsBeats

The Power of Relative Strength

Accenture Ltd (ACN) has been the best stock in my Income Portfolio since its inception on May 19th. ACN has its fingers into a number of different areas, although it's technically classified as a software stock. Since reporting earnings at the end of June, ACN has been moving straight up. In addition to the solid capital appreciation, ACN also enjoys a very nice 1.50% dividend yield. The absolute strength on the chart is quite apparent:



ACN also shows excellent relative strength vs. the S&P 500, which is why I was interested in including ACN in the more defensive Income Portfollio. The Income Portfolio is holding its own against the benchmark S&P 500 despite having very little exposure to the high-flying technology and consumer discretionary sectors. It's another example of the power of using relative strength to build a portfolio, regardless of your strategy.

Happy trading!

Tom Bowley

;

Sr. Technical Analyst
StockCharts.com

Mark your Calendars for Monday, July 29 when we'll have our Q2 Earnings Webinar, a MUST attend event! Details to follow.

Dear EarningsBeats Community Member.

First, I want to make sure you get a copy of the recording from Monday's 2019 2nd Half Market Outlook featuring StockCharts.com Senior Technical Analyst Tom Bowley. REALLY worth watching so here is a link to the recording.

https://www.earningsbeats.com/public/2019-2nd-Half-Market-Outlook.cfm

Putting Profits in your Pocket

We issued a long alert to our members on ROKU on July 2 with an entry price of $92.59, a price target of $108 and a stop of any close below $85. The stock did not disappoint. Instead once it had pulled back and tested its 50 day moving average after rocketing higher we saw an opportunity to take advantage of the pullback which is when we issued the trade alert.



You can see that we issued a profit alert short of our price target but after the stock has risen close to 10% over just a few trading days. The stock continued to move higher but that was fine with us as we suggested to those who continued to hold to raise their stop in case of a pullback. Bottom line is when you get such a strong move over a short period of time you should consider booking at least some profits, not worry about what was "left on the table" and move on to the next profitable trade.

At your service,

John Hopkins
EarningsBeats

Dear EarningsBeats Community Member:

It's Webinar day! And it's going to be a good one as Tom Bowley, Senior Technical Analyst of StockCharts.com, joins me for his "2019 2nd Half Market Outlook". We expect a full house but are extending our 4th of July Special through this morning for those of you who would like to attend. Just click on the link below to learn more and register. And remember, the event will be recorded for those of you unable to attend the live event.

https://www.earningsbeats.com/public/4th-of-July-Special.cfm?ref=ebd

At your service,

John Hopkins
EarningsBeats.com

Specialty Retailers - Breakout:

As most of you know by now, I like to follow the leading industry groups as they tend to offer up the best trading candidates. Industry group relative strength is very important because it signals what Wall Street is doing with their money, not with their mouths! Sometimes analysts speak with forked tongues so it's extremely important to follow where the money is going.

Last week, we saw an absolute breakout in one of the hottest areas in the first four months of 2019. Specialty retailers ($DJUSRS) broke out of a bullish cup with handle continuation pattern, which suggests we're going to see further strength ahead in this group. A further confirmation signal would be a relative breakout to the S&P 500. Here's a current look at the chart:



Identifying these technical developments as they occur is of utmost importance if your goal is to outperform the benchmark S&P 500. Later this afternoon at 4:30pm EST, I'll be joining John Hopkins, President of EarningsBeats.com, for a "2019 2nd Half Market Outlook" webinar. You do not want to miss this as I'll discuss the industry groups to consider and also the groups to avoid as we look to outperform in the last six months of 2019.

CLICK HERE for more information.

I hope you can join us!

Happy trading!

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Dear Earnings Beats Community Member:

The first half of 2019 in now in the books and now we're one day closer to the kickoff of earnings season that will take place starting next week. And, with the first half of the year now behind us, what might the second half bring us? Well, we're going to get more than a glance of what to look for when Tom Bowley of StockCharts.com joins us next Monday, July 8 at 4:30 pm eastern for his "2019 2nd Half Market Outlook" that will include discussions about positioning for a major market move higher, areas to avoid and establishing a winning portfolio of relative leaders in a strong bull market. This webinar is exclusively for EarningsBeats.com subscribers and we want as many people as possible to attend. So we created a 4th of July Special that you can learn more about by clicking on the link below. And remember that the webinar will be recorded for those of you unable to attend the live event. You REALLY don't want to miss this one and can sign up by clicking on the link below.

https://www.earningsbeats.com/public/4th-of-July-Special.cfm

Sticking with the Leaders:

MSCI, Inc. (MSCI), a specialty finance ($DJUSSP) company, has been an exceptional performer in 2019, but even the strongest stocks provide opportunities for entry. MSCI was named among the 10 Model Portfolio stocks on May 19th, but less than two weeks later you can see that MSCI tested both recent price support and its 50 day SMA:



MSCI had closed at 224.81 on Friday, May 17th, prior to its inclusion in the Model Portfolio. Specialty Finance was a leading industry group and MSCI was a leading stock within Specialty Finance. It was an easy choice. Since that time, MSCI has risen another 9.23%, nearly doubling the S&P 500 return of 4.77% over that same period. That's one major component of portfolio success - lining your portfolio with relative strength winners. There may be 2-3 stocks that under perform, but the majority will likely continue to outperform, carrying your portfolio to gains well above that of the S&P 500. The initial group of 10 Model Portfolio stocks were announced on November 19th, 2018. 8 of those 10 outperformed the S&P 500 over the next three months. On February 19th, 2019, the second batch of 10 Model Portfolio stocks were announced. 7 of those 10 outperformed. Now we're onto our third batch of 10 Model Portfolio stocks (announced May 19th, 2019) and currently 6 are outperforming? 4 are either doubling or tripling the S&P 500 return since May 19th.

The message here is to stick with the leaders.

Join me on Monday, July 8th when I'll discuss my Market Outlook for the 2nd half of 2019. In addition to discussing where I believe the S&P 500 is going, I'll also review key industry groups where you want representation in your portfolio.

The cost? Nothing if you're an EarningsBeats.com subscriber. And if you're not? Sign up for the July 4th special. $4 for 4 weeks. Just click on the link below for more information.

https://www.earningsbeats.com/public/4th-of-July-Special.cfm

Hope to see you there!

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Dear EarningsBeats Member:

Traders are getting ready to take a day off as he market is ready to close for the 4th of July holiday.with the S&P having reached an all time high. And now we're one day closer to the kickoff of earnings season that will take place the week after next. And, with the first half of the year now behind us, what might the second half bring us? Well, we're going to get more than a glance of what to look for when Tom Bowley of StockCharts.com joins us next Monday for his "2019 2nd Half Market Outlook" that will include discussions about positioning for a major market move higher, areas to avoid and establishing a winning portfolio of relative leaders in a strong bull market. This webinar is exclusively for EarningsBeats.com subscribers and we want as many people as possible to attend. So we created a 4th of July Special that you can learn more about by clicking on the link below:

https://www.earningsbeats.com/public/4th-of-July-Special.cfm

You REALLY don't want to miss this one!

Patience CAN Pay Off

Back on May 29, we issued a trade alert on OMC after the stock had made a sharp move higher after it reported earnings and then pulled back to test its 50 day moving average. The entry price was $77.36 with a closing stop of $76.40 and a price target of $84. The stock tested that $76.40 level a few times but held. Then it slowly started building steam but looked like it might be stalling. Then lo and behold it worked its way to within pennies of the target yesterday, taking over a month to get there but showing that patience sometimes can indeed pay off!



Happy 4th!

At your service,

John Hopkins
EarningsBeats

Dear EarningsBeats Member:

We've got a new trading month getting underway with earnings season getting ready to kick off in the next two weeks. The overall expectations are mixed with traders wondering what impact the tariffs and lower interest rates might have had on the bottom line of Corporate America. We'll be following all of the developments and keeping everyone posted. In the meantime, mark your calendars for next Monday, July 8 when we'l be joined by StockCharts.com Senior Technical Analyst Tom Bowley when well have our "Market Outlook - 2nd Half 2019" Webinar. You won't want to miss this one!

Identifying Shifts in Relative Strength

While it's important to stick with industry groups that are leading the benchmark S&P 500, we need to be aware of changes taking place in relative strength throughout the market. One such change appears to be unfolding in the Dow Jones U.S. Toys Index ($DJUSTY). This group was battered in the second half of 2018 and really hadn't begun to recover....until Friday. Here's the chart:



Not only do we see an absolute breakout above the 850 level, but the DJUSTY:$SPX relative ratio just crossed above its 20 week EMA. That's not a "jump all in with both feet" signal, but a group cannot get healthy until that cross occurs. It's definitely a step in the right direction. The first test will be to see whether the DJUSTY can hold above its breakout level and if relative strength continues to build.

Happy trading!

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Dear Members:

First, mark your calendars for Monday, July 15 when we will conduct our Q2 Earnings Webinar. The webinar will focus on stocks that have already reported by that time as well as companies about to report that could make significant moves once their numbers are released. Details will follow as we get closer to the event.

Next, make sure you check out my article that will appear in this weekend's StockCharts.com's "ChartWatchers" newsletter.

At your service,

John Hopkins
EarningsBeats.com

Today's Focus: Relative Strength

Given the selling earlier in the week, many stocks moved down to key support or are quickly approaching it. Some have even dropped below, under-performing many of their peers. Beware stocks that lose key price support levels and show weak relative performance. The next earnings season is just around the corner and Wall Street may be sending us a signal that those stocks might be seeing changes in their business and outlook. One such company is E*Trade Financial Corp (ETFC):



ETFC is part of the Strong Earnings ChartList because, at the time of its latest strong quarterly earnings report, it gapped higher and held its rising 20 day EMA during its initial pullback. But a lot has changed since then. One look at its relative strength vs. investment services ($DJUSSB) and the benchmark S&P 500 ($SPX) tells us that traders are bailing on the stock. If the 10 year treasury yield ($TNX) were to stage a bit of a rally, that would help ETFC, but it would likely help other financial stocks more. Remember, we want to focus on stocks showing relative strength, not weakness.

Happy trading!

Tom Bowley
Sr. Technical Analyst
StockCharts.com

Dear EarningsBeats Members:

When looking for suitable trades for our members we prefer those that are in the strongest industries; relative strength does matter! However even in industries that might not be at the top of the relative strength pyramid there will always be strong stocks that could be solid reward to risk candidates, especially if they pullback to key technical/price support. One of those stocks is LULU Lemon (LULU), a company that recently reported earnings, beat top and bottom line expectations, gapped up on solid volume and then on Tuesday pulled back to key technical support which is when we issued the trade alert to our members:



We assigned two entry levels; $176.25 and then $172.50 on any pullback. Price target is $190 and stop is any CLOSE below $170.

At your service,

John Hopkins
EarningsBeats

Dear EarningsBeats Member:

Microsoft (MSFT) has been a leader as the S&P worked its way to an all time high, hitting its all time high last week as well. It's certainly in the right industry as software has been hot. But MSFT is stretched here so it's tough to chase. However if it does pullback it could be an opportune time to pounce. It will just take some patience.



At your service,

John Hopkins
EarningsBeats

Dear EarningsBeats Community Member:

Our focus at EarningsBeats.com is on companies that beat earnings expectations and have charts that look promising. In today's EarningsBeats Digest, StockCharts.com Senior Technical Analyst Tom Bowley takes a look at two stocks that made our Strong Earnings ChartList.and have powered his Model portfolio higher.

Today's focus: Shopify (SHOP) and Everbridge, Inc. (EVBG.)

While many eyes have been on software companies Adobe Systems (ADBE) and Oracle Corp (ORCL) after both beat top and bottom line estimates this week, mine have been focused on two stellar software out-performers that have contributed to my Aggressive Portfolio and Model Portfolio gains since their May 19th unveiling of +10.98% and +9.21%, respectively. The S&P 500, by contrast, has risen just +3.31%. The Model Portfolio actually began on November 19th, 2018 and has swamped the S&P 500, +42.12% to +9.79%. That's serious out-performance and it's driven by sticking with fundamentally and technically sound companies. Shopify, Inc. (SHOP) and Everbridge, Inc. (EVBG) are the two software companies that have been helping to drive my portfolios higher:



SHOP and EVBG are two powerhouses in software. Relative strength should play a key role in your portfolio construction. By trading only companies that are leaders in their industries (and those industries are leaders vs. the S&P 500), you will find that you own the best of the best. That leads to the type of outperformance discussed in the two portfolios above.

Happy trading!

Tom Bowley
Sr. Technical Analyst
StockCharts.com