EB Weekly Portfolio Report - Saturday, November 20 2021
Fall Special
I want to make sure that all of our members are aware that our Fall Special runs through this Saturday, November 27th. It's the BEST deal we've ever offered at EarningsBeats.com as we're rewarding members significantly for extending their membership over 1-year, 2-year, or 3-year periods. Anyone extending will receive the following number of bonus months FREE:
- 1-year extension: 2 bonus months FREE
- 2-year estension: 6 bonus months FREE
- 3-year extension: 1 bonus YEAR FREE
If you have any questions, please reach out to us at "[email protected]". We really appreciate your support and hope you'll take us up on this SPECIAL offer! Hurry though as it ends in 7 days!
Abbreviated Report
This week's report will be abbreviated. I'm not providing any market commentary and the various portfolios show the QUARTERLY performance of each component stock as the quarter drew to a close on Friday. I'll provide a few charts of our new portfolio stocks next weekend.
Upcoming Earnings Reports
According to Zacks.com, the following companies will be reporting earnings this week and each is a component of one of our portfolios:
Monday, November 22: None
Tuesday, November 23: None
Wednesday, November 24: None
Thursday, November 25: None - Market Closed for Thanksgiving Holiday
Friday, November 26: None
PLEASE NOTE: The above companies were provided after scanning the Zacks Earnings Calendar. My research is limited to what Zacks provides and I also can make a mistake from time to time, so please check for earnings dates for all companies that you own. We do hold our portfolio stocks through one earnings report, but every EarningsBeats.com member must make his/her own investing/trading decisions about holding stocks into earnings reports as it's the most volatile (risky) time to own a stock.
Portfolio Rules and Objectives
Here are the common traits and objectives of our portfolios:
- There are 10 leading stocks from up to 10 leading industries in each portfolio (at the time of selection). Generally, there will only be one stock per industry group, but there could be exceptions.
- They are held for an entire 90-day period, with no stops in place. We strive for consistency, transparency, and simplicity in our portfolios. EB.com members may hold these stocks for the entire 90 days, trade them, use stops, etc., but for purposes of our calculation, we will make no exceptions to our "buy and hold for three months" strategy.
- Every stock will generally be held through ONE earnings report
- The expectation is that relative winners will carry the portfolio to outperformance
- They were all entered into as of the close on Friday, November 19th; members may choose to try to time better entries, but EB.com "purchased" as of November 19th's closing price
- Primary objective is to outperform the benchmark S&P 500
Here are several considerations for EB members:
- I would expect the Strong AD and Aggressive portfolios to be the riskiest, followed by the Model portfolio, and then the Income portfolio
- The Strong AD portfolio will be selected from a combination of rising accumulation/distribution lines and SCTRs above 70 at the time of selection. It is the only portfolio that does NOT require a revenue and EPS beat in its most recent quarterly earnings report
- The Income portfolio stocks will all pay dividends, with the expected average dividend yield to be at least 1.0%
- Drawdowns (losses) should be much milder on the Income portfolio, with more volatility expected on the other three; please review inception-to-date charts below to gain an idea of the volatility associated with each
- I believe the larger drawdown on the Income portfolio at the beginning of the pandemic was an anomaly, occurring as many defensive, higher-yielding companies uncharacteristically underperformed during a market decline.
- Large drawdowns in the February through May 2021 period were due to the rapid rotation from growth stocks to value stocks; each quarter, our portfolios are based on themes and there is never a guarantee that our analysis and beliefs will be proven correct
- You should consider owning or trading these stocks in whatever manner is most comfortable for you; while we will buy all 10 stocks in the manner identified above, feel free to trade certain stocks or wait for pullbacks if the stocks are overbought
- We have no idea what risk each member is willing or able to take. We are not registered investment advisors so be sure you understand the risk you take. Please consult your financial advisor.
- EarningsBeats.com shareholders/employees may own all or some of the portfolio stocks from time to time.
Weekly Snapshot
Here's a weekly recap:
Weekly Summary
Benchmark S&P 500:
I'm providing an abbreviated version of our EB Weekly Portfolio Report this week. I'll be back with this section next weekend.
Model Portfolio:
The Model Portfolio tacked on 1.30%, beating the S&P 500. Here's the updated inception-to-date chart of the portfolio:
Here are how the Model portfolio component stocks performed last Quarter:
Aggressive Portfolio:
The Aggressive Portfolio surged 4.65%, crushing the benchmark S&P 500. Here's the updated inception-to-date chart of the portfolio:
Here are how the Aggressive portfolio component stocks performed last Quarter:
Income Portfolio:
The Income Portfolio lost 0.59%, slightly underperforming the S&P 500. Here's the updated inception-to-date chart of the portfolio:
Here are how the Income portfolio component stocks performed last Quarter:
Strong AD Portfolio:
The Strong AD Portfolio dropped 2.34%, losing ground to the S&P 500. Here's the updated inception-to-date chart of the portfolio:
Here are how the Strong AD portfolio component stocks performed last Quarter:
Earnings Reaction Portfolio:
The Earnings Reaction Portfolio fell 2.15%, falling further behind the S&P 500. Here's the updated inception-to-date chart of the portfolio:
Here are how the Earnings Reaction portfolio component stocks performed last week:
Summary
I'll be back with this segment next week as well.
Model ETF Portfolio
Our Model ETF Portfolio fell %, .
Here's the updated inception-to-date chart of the Model ETF Portfolio:
Here are how the Model ETF Portfolio component ETFs performed last week:
Happy trading!
Tom Bowley, Chief Market Strategist
EarningsBeats.com
"Better timing. Better trades."