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Thread: Value of Earnings

  1. #1
    Join Date
    Dec 1969
    Location
    Tarzana, CA
    Posts
    962

    Value of Earnings

    Box Stocks.pptx
    I ran a study over the last 12 months to verify if stocks with stronger earnings were leading stocks with lower earnings. In a junk off the bottom environment we need to convince ourselves if earnings still rule.
    I exported all stocks in the MarketSmith database trading above $5. I filtered out all thinly traded stocks trading below $10M per day (50-day avg volume times current price).
    I applied a definiton of 5-year average earnings and quarterly earnings averaged over the last two quarters developed by Ian Woodward which boxed stocks into a 9-Box matrix. These he calls "HGS Box Stocks" but maybe should be called IBD Box stocks here.
    I computed 12-month gains for each stock and averaged by Box.

    The results are summarized in the attached powerpoint file.

    Bottom line is that strong annual earnings and quaterly earnigs still rule.
    If anyone wants the backup excel spreadsheet I will post that also.
    Mike Scott
    Cloverdale, CA

  2. #2
    Join Date
    Dec 1969
    Location
    Vienna, Virginia
    Posts
    603
    Quote Originally Posted by mscott View Post

    If anyone wants the backup excel spreadsheet I will post that also.
    Yes, please, I would appreciate the spreadsheet.

    Regards,

    pgd

  3. #3
    Join Date
    Dec 1969
    Location
    Tarzana, CA
    Posts
    962
    Quote Originally Posted by grems8544 View Post
    Yes, please, I would appreciate the spreadsheet.

    Regards,

    pgd
    The excel spreadsheet is attached.

    Mike Scott
    Tarzana, CA
    IBD Box Stocks.xlsx
    Mike Scott
    Cloverdale, CA

  4. #4
    Join Date
    Jan 1970
    Location
    New York, NY
    Posts
    191

    Thanks

    Mike, Thank you. I have deep respect for the amount of homework you do. It truly shines through in every post.

    Ernst

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