But when it comes to the best offbeat companies, dividends follow blue-chip stocks. And you can discover them after the institutional request.
Earnings follow Superstar shares
Let’s start with the market first. Below shows how the price of the S&P 500 has been drawing a strong correlation to earnings per share lagging 12 months since 2012.
Understanding the overall earnings picture will give you an edge. But when it comes to the best stocks out there, the stock often moves ahead of the earnings explosion.
Takes NVIDIA Corp. (NVDA) as an example. Here is an illustration of the stock price since 2012 versus 12-month delayed EPS. Note three periods in which the stock rose before earnings appeared:
First, NVDA jumpstarted in 2015, when post-earnings was 0.28 per share. Fast forward to January 2019, earnings per share rose to $1.87.
Monitor 2Abbreviation II Green circle, stock started juicing at 2Abbreviation II Half of 2019 when the trailing stock was as low as $1.11. Fast forward to April 2022, EPS swelled to $3.85.
Let’s look at another recent example, Super Micro Computer (SMCI).
The charts below overlay stock price vs. earnings since 2012. Notice last summer, the stock started to rally in the middle of a bear market!
Stocks and earnings have been silent for years. Then in June 2022, the stock started to go up. At the time, the share price with a 12-month backlog was at $3.44, rising to $10.61 by August 2023.
This proves once again how dividends follow superstar stocks.
So, what can investors do to catch these stocks trading early? Follow the big money. MAPsignals is all about finding the best stocks in the corporate backlog.
Below are NVIDIA’s charts for each time they were identified in our search. This blue signal is made up of two factors: institutional buying pressure and healthy fundamentals such as earnings growth.
Here are the three circles I noticed for NVDA:
Next, to you SMCI Footprints. Again, the blue bars showed up last summer as earnings were set to explode:
Please note that this buying started in the teeth of a bad bear market. This is the power of big money analysis.
Final summary and explanatory video
In general, stocks follow earnings. The relationship is undeniable. But the biggest prize is spotting the exiting stocks that are on the radar of professional investors.
Follow the big money and never forget that profits follow superstar stocks.
These visions are a truncated view of Research MAPsignals which you can learn more here.
Disclosure: At the time of writing, the author does not hold any positions with NVDA or SMCI.
this condition Originally published on FX Empire
