One of the best ways to find the next big winner is to track how stocks react to earnings.
And this earnings season was insane...
Here are some of the biggest 1-day earnings reactions:
$Innodata(INOD)$ +85.91%
$Backblaze, Inc.(BLZE)$ +63.58%
$Sterling Construction(STRL)$ +52.22%
$DigitalOcean Holdings, Inc.(DOCN)$ +40.40%
$Fluence Energy, Inc.(FLNC)$ +39.90%
$Flex Ltd(FLEX)$ +39.71%
$Xometry, Inc.(XMTR)$ +39.18%
$Silicom(SILC)$ +37.75%
$Hut 8 Mining Corp(HUT)$ +35.31%
$Rocket Lab USA, Inc.(RKLB)$ +34.32%
$AAON Inc(AAON)$ +31.49%
$Datadog(DDOG)$ +31.33%
$Himax(HIMX)$ +30.01%
$SiTime Corp(SITM)$ +27.91%
$Bloom Energy Corp(BE)$ +27.21%
When companies surprises to the upside, the market is repricing the company.
Everyone raises their price targets. Funds that were underweight now need to buy. Short sellers rush to cover. And all of that buying pressure can push the stock much higher in a very short period of time.
Sometimes it is just a one hit wonder and then gives back the entire move a few days later. Because the report was good, but not good enough to change the long-term story.
But in other cases, earnings become the start of something much bigger.
That is usually when the report confirms that growth is accelerating, demand is expanding, and the company is starting to separate itself from competitors. Institutions begin to realize they may be looking at one of the next major leaders.
The stock keeps holding its gains, keeps making new highs, and every small pullback gets bought aggressively.
Those are the names worth paying attention to.
馃槏 Been eyeing Tiger merch but short on Tiger Coins? Now's your chance.
馃巵 We鈥檝e selected 4 high-demand items across practial, lifestyle, and learning, now with a lower redemption threshold!
Hot Merch Returns 路 Up to 43% Off
Comments