All eyes are on corporate earnings this week as 20 percent of all U.S. publicly traded companies report quarterly results. How do you know which stocks will give you a nice return on reporting day?
Bespoke Investment Group co-founder Paul Hickey looked at 2,240 stocks and found just nine stocks that have gone up every time earnings day has rolled around, since the March 2009 market bottom.
Below are the nine earnings-day winners. Next to each company's name find the upcoming earnings-report date and average single-day percentage gain.
1. Verifone Systems(PAY) - 5/26/2011 - 9.20%
2. Dice Holdings(DHX_) -4/28/2011 - 8.69%
3. MWI Veterinary Supply(MWIV_) - 5/6/2011 - 6.27%
4. Opnet Technologies(OPNT_) - 5/9/2011 - 5.80%
5. First Cash Financial(FCFS_) - 4/20/2011 - 4.24%
6. Raymond James(RJF_) - 4/21/2011 - 4.12%
7. Barrick Gold(ABX_) - 4/27/2011 - 3.24%
8. Horace Mann Educators(HMN_) - 4/28/2011 - 2.61%
9. Anadarko Petroleum(APC_) - 5/3/2011 - 1.82%
Source: Bespoke Investment Group.
We entered the nine stocks in a portfolio on our system and started tracking from the end of 2007. This is limited by the age of the youngest equity. We show the current holdings with no rebalancing since the end of 2007.
Fund in this portfolio | Price | Percentage |
---|---|---|
MWIV (MWI Veterinary Supply, Inc.) | 84.25 | 9.66% |
OPNT (OPNET Technologies Inc.) | 38.75 | 21.75% |
FCFS (First Cash Financial Services,) | 38.11 | 11.91% |
RJF (Raymond James Financial Inc) | 37.44 | 5.61% |
ABX (Barrick Gold) | 55.63 | 6.28% |
DHX (Dice Holdings, Inc.) | 17.75 | 10.19% |
OPNT (OPNET Technologies Inc.) | 38.75 | 19.62% |
PAY () | 53.57 | 10.57% |
HMN () | 16.88 | 4.42% |
We compare this with our benchmark six asset ETF portfolio.
Asset Class | Ticker | Name |
---|---|---|
LARGE BLEND | VTI | Vanguard Total Stock Market ETF |
Foreign Large Blend | VEU | Vanguard FTSE All-World ex-US ETF |
DIVERSIFIED EMERGING MKTS | VWO | Vanguard Emerging Markets Stock ETF |
REAL ESTATE | VNQ | Vanguard REIT Index ETF |
COMMODITIES BROAD BASKET | DBC | PowerShares DB Commodity Idx Trking Fund |
Intermediate-Term Bond | BND | Vanguard Total Bond Market ETF |
The comparison is
- Dividend Stocks Increasing Payouts -- Total of $10K invested equally in each stock
- Six Core Asset ETF Benchmark Tactical Asset Allocation Moderate -- Above funds using TAA (40% fixed income, 30% for each of the top two asset classes)
- Six Core Asset ETF Benchmark Strategic Asset Allocation Moderate -- Above funds using SAA (40% fixed income, 12% for each of the five asset classes -- funds selected based on price momentum)
Portfolio Performance Comparison
Portfolio/Fund Name | 1Yr AR | 1Yr Sharpe | 3Yr AR | 3Yr Sharpe | 5Yr AR | 5Yr Sharpe |
---|---|---|---|---|---|---|
P 9 Stocks That Gain Every Earnings Day | 93% | 332% | 40% | 101% | ||
Six Core Asset ETF Benchmark Tactical Asset Allocation Moderate | 11% | 82% | 9% | 76% | 13% | 87% |
Six Core Asset ETF Benchmark Strategic Asset Allocation Moderate | 15% | 121% | 4% | 20% | 7% | 34 |
Three Month Chart
This is certainly a selection of equities that have performed very well, especially as the market bounced back in 2010 and up until today..
For those so inclined, it might be worth considering taking a certain portion of their portfolio and dedicating it to this group of stocks.
We will keep tracking this set of equities and see how they perform going forward.
Disclosure: MyPlanIQ does not have any business relationship with the company or companies mentioned in this article. It does not set up their retirement plans. The performance data of portfolios mentioned above are obtained through historical simulation and are hypothetical.
Symbols: PAY, DHX, MWIV, OPNT, FCFS, RJF, ABX, HMN, APC
Exchange Tickers: PAY, DHX, MWIV, OPNT, FCFS, RJF, ABX, HMN, APC
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