EarningsBeats.com Digest for July 15

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

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