EB Weekly Portfolio Report - Sunday, August 16, 2026

Tom Bowley - August 16, 2026

Next Portfolio Draft

Our next Portfolio Draft would normally be scheduled for Tuesday, August 18th, and we'd enter at the closing price on Wednesday, August 19th. However, monthly options expiration, which occurs on the 3rd Friday of every month, falls on Friday, August 21st this quarter. We know how volatile options-expiration week can be and, historically, the Monday that follows options-expiration Friday is the worst day to be invested in U.S. stocks. So, we've decided to postpone entry into our next Portfolios until Tuesday morning's opening bell on August 25th to avoid a possible draw down, resulting from options expiration week and the Monday that follows it.

We are planning to host our next Portfolio Draft on Monday, August 24th, after the closing bell. More information will be provided as that date draws nearer.

We will exit our current stock portfolios - Model, Aggressive, and Income - at the close on Wednesday, August 19th and will remain in cash in the portfolios until we purchase the next set of portfolio stocks at the opening bell on Tuesday, August 25th.

I received a member question, asking if any of the current portfolio stocks would be included in the next portfolios. The member was looking to avoid tax consequences of selling a portfolio stock, triggering income taxes on gains, and then rebuying that same stock. Unfortunately, I am not going to decide on portfolio stocks until this upcoming weekend. One possible way to handle this is to hold those profitable stocks for 3 additional days (this Thursday and Friday and next Monday). It does risk those gains for 3 additional days, but it avoids the tax implications if we do decide to retain certain stocks in our portfolios for the next 90 days. If stocks with losses are sold and then rebought, it's a "wash sale" and the loss simply rolls into the basis of the stock when it's rebought.

Upcoming Earnings Reports

According to StockCharts.com, the following companies will be reporting earnings this week and each is a component of one of our portfolios:

Monday, August 17: None

Tuesday, August 18: None

Wednesday, August 19: None

Thursday, August 20: ROST

Friday, August 21: None

PLEASE NOTE: The above companies were provided using Zacks.com earnings dates. We do typically 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:

Historically, there have been 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. Beginning with the August 2023 portfolios, we made changes to this strategy, specifically, allowing more than our traditional 10 equal-weighted stocks. We may include more than 10 stocks in each portfolio, with some weighted at 5% instead of 10% of the portfolio, if we choose to do so.
All stocks are typically held in our portfolios 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 typically make few 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.
All portfolio stocks were announced on Monday, May 18th, and all were entered into as of the Tuesday, May 19th closing price - again, for our tracking purposes at EB.com.
Primary objective is to outperform the benchmark S&P 500 over time; quarter-to-quarter performance can be extremely volatile, especially if significant rotation takes place intra-quarter.

Here are several considerations for EB members:

The Income Portfolio should have the least amount of volatility as it will typically be comprised of quality large cap stocks with solid dividends; it also will typically underperform the S&P 500 during bullish periods as dividend-paying value stocks normally won't keep up with their growth counterparts.
The Model and Aggressive Portfolios should be viewed similar to very aggressive growth funds; they will typically have a lot of volatility and drawdowns can be significant from time to time.
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 two; 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 and the November 2021 to February 2022 periods 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.
Consider owning or trading these stocks in whatever manner is most comfortable for you; while we will enter all 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 before buying or selling any securities.
EarningsBeats.com shareholders/employees may own all or some of the portfolio stocks from time to time.