***Note: This message is part of Louis Navellier’s Market 360 e-letter series. If you don’t already receive these email alerts, and would like to, you may sign up to his mailing list here.***
Second-quarter earnings season has been a bit of an adventure, so far, wouldn’t you say? With earnings announcement season kicking off amidst the Greek tragedy, chaos in China and speculation over the Federal Reserve and interest rates, I knew that investors were going to need a little extra help. That’s why I launched this special series—to help you navigate this challenging environment. And while the curtain is relatively down on the Greek tragedy, the Chinese markets have settled down and the Fed has yet to raise interest rates, the U.S. markets remain volatile.
The continuing volatility is largely attributable to second-quarter earnings announcement season. There have been earnings and sales misses, due to the strong U.S. dollar, at many large multinational companies, as well as some stunning earnings surprises. But, in many cases, whether a company missed or surprised, shares have sold off. As investors, it’s rather frustrating when Wall Street doesn’t seem to care if a company’s sales, earnings or guidance was negative or positive.
What’s interesting, though, is that when stocks are hit with profit taking in the wake of better-than-expected earnings, they suddenly “right themselves” in subsequent days. And that’s the way High Frequency Trading (HFT) systems work; what is down one day is frequently up the next. That’s why throughout this earnings season, and throughout this Market Maneuvers series, I’ve stressed the importance of focusing on companies with robust earnings and sales growth—and little negative exposure to the strengthening U.S. dollar.
We covered several different sectors in recent weeks, discussing some of the top stocks in each and revealing some of the duds. I hope our market commentary and stock analysis was informative and helped you navigate this bumpy earnings season. Remember, diversification is always the key to success in any market, and our Market Maneuvers series should have given you a variety of good stocks to choose from—and bad stocks to avoid.
I will continue to be in touch with our regular Market 360 communications as we work our way through the end of the summer.
If you missed any of the part of the series, or would like to review any again, I encourage to start with the few “featured” articles below. These were some of the most-read articles of the series, and they are always worth a second look.
Two Biotech Stocks that Continue to Lead the Pack
Volatility is on the rise on Wall Street. Investors are skittish, and not sure if this is a dip to buy or a time to sell. With negative headlines dominating the news and a weak earnings season kicking off, a concrete investing strategy is paramount. In this special Market Maneuvers feature, I break down the most important events impacting the market, and then identify some of the top stocks in the biotech industry right now.
Now is the time to make sure you’re smartly positioned in companies that are still growing sales and earnings in this challenging environment. Over the past few weeks, I’ve recommended a number of defense, financial and biotech stocks that are solid buys. Let’s cover two high-profile chipmakers that should be sold.
So far this year, retail sales have been pretty mixed. Many U.S. consumers remain cautious, given the still recovering economy, and as such, they’re not too willing to hand over their hard-earned money for just anything. But if you look in the right corners of the retail sector, there are good buys right now; two of which I’d like to highlight here.
In Case You Missed Them…
- The Strongest Defense for When Volatility Is High
- My Top Two Secure Software Bets
- Two Energy Stocks to Buy Now
P.S. If you have any questions or comments about this special series or have suggestions for our next in-depth series, please drop me a line here. While Market 360 is a free service, I deliver top-notch commentary, actionable advice and guidance on the topics most important to you. Help me continue to do that with your comments and suggestions.