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After Major Selling on Strong Earnings, Here’s What to Expect Next

by | Jan 28, 2022 | Stocks

Despite well-known headwinds like cost pressures and logistical bottlenecks, companies have still been able to beat earnings-per-share (EPS) and revenue estimates… 

Isn’t that something?! 

The number of companies beating EPS and revenue estimates is tracking above what we had last earnings season from the same group of stocks… and it’s something that should continue… 

Which is why I want to address what else to expect from Q4 2021 earnings. 

What Else to Expect From Q4 2021 Earnings 

A few notable operators like JPMorgan Chase, Fastenal and General Electric stand out for providing weak outlooks. But most companies have been able to offer reassuring if not positive guidance.

If we look at Q4 2021 as a whole, numbers are going up… 

Total earnings for the fourth quarter are expected to be up 22.1% from the same time period last year on 12.2% higher revenues. 

Now, Apple Inc. (Nasdaq: AAPL) reported its Q4 2021 earnings Thursday after the closing bell. And if there was a time the stock market needed a big company to crush the numbers, this was it! 

Wall Street estimates pegged AAPL for about $119 billion in sales for the fourth quarter, which would be about 7% higher from a year ago. 

For those of you wondering, AAPL reported its largest single quarter in terms of revenue ever Thursday evening, with sales increasing 11% to $123.9 billion — that’s great because it means supply chain issues are improving! 

Technically, the stock’s been trading below its 50-day moving average. However, it’s been heading higher the past few earnings seasons, including a spike as high as 6.2% on Friday. 

I mean, its 10-day RSI is below 30, which tells me AAPL’s price is overdone to the downside. 

And unless it breaks below the $154.70 level — which seems unlikely since it was at $167.76 at 3 p.m. EST Friday, I’ll consider that the bullish trend is still intact. 

Check out my short video below to find out what else to expect from Q4 2021 earnings season. 

I hope this helps! 

Don’t forget to like and subscribe to our YouTube channel if you haven’t already so you can be notified as soon as we post our next video and see what other trade opportunities we’re paying close attention to! 

P.S. We can all agree that this past week was a wild ride in the stock market… 

But for a select group of traders, it was just like any other day because we were prepared for this ongoing sector rotation. 

That’s because we have the only strategy I know of that’s been able to crush S&P 500 returns by 9.5 times over the past 12 years…

In fact, we’ve racked up an overall return of 134% since October! 

And now, I want to give everyone the help they need to be highly successful traders when the market starts rotating in and out of the 11 major sectors! 

Check this out! 

WRITTEN BY<br>Roger Scott

Roger Scott

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