5 Investing Tips for Earnings Season

5 Investing Tips for Earnings Season

Inside Investing  | Feb 21, 2019 21:49

5 Investing Tips for Earnings Season

Some of the most interesting (and sometimes stressful) times of the year, is Earnings Season – a period after each fiscal quarter where publicly-traded corporations must report their earnings to the SEC. (Privately-held companies are exempt)

Companies will usually release their reports throughout January, April, July and October, but some will submit their reports even later.

Experienced investors may have already noticed that the reports are usually released only after markets close, and often on Fridays. The main reason for this are that both the reports and the news surrounding them tend to affect company stocks, and therefore, they wish to mitigate stock volatility and minimize any potential losses as a result.

So what can you do to be ready when earnings season comes?

Here Are 5 Tips That’ll Help You Make the Most of Earnings Season

  1. Review Previous Statements

One great tool in your arsenal is access to the corporation's previous statements and earnings reports. If the company has been discussing an increase in sales throughout the year, or if their previous reports were all positive, it’s a good indicator of how their next earnings report is going to look like. Spend some time and do your research – it’ll be worth it.

Pro tip #1: The full report will be available on the SEC’s EDGAR website.

“Behind every stock is a company. Find out what it’s doing.” – Peter Lynch

2. Use the Investing.com Alerts

One of the most singularly useful tools out there is the Investing.com Alerts. Add the stock symbol or company name (only U.S. stocks at this time) to the list and you’ll receive an alert both on the website and in the app as it comes out. You can also get an alert one trading day before so you never miss an update again.

“Risk comes from not knowing what you’re doing.”  – Warren Buffett

3. Check the Earnings Calendar

After setting up the alerts, go to our Earnings Calendar and find exactly where the companies you’re interested in will release their earnings report. You can use the filter to find specific stocks, or filter the calendar by country, importance or sector. You should probably add alerts for the companies you’re following so you’ll be notified as soon as the report is released.

"An investment in knowledge pays the best interest." - Benjamin Franklin

4. Community is Key

Market sentiment is not always the easiest thing to measure or even assess, but you can notice trends and follow discussions in investment circles to get a feel for what’s happening with your stock of choice. Use the investing.com forums to see what other investors think about each stock and join in the discussion. In addition, Investing.com lets you cast your sentiment and see how other investors on the sight feel about the instrument. The sentiment data is commonly used by financial institutions to make investment decisions. You also join discussions on websites such as Reddit, where many people congregate.

"Great investors need to have the right combination of intuition, business sense and investment talent.” - Andrew Lo

5. Follow a Pundit (or 10)

It doesn’t matter if you’ve been investing for a while or just created your very first portfolio – there’s no need to reinvent the wheel. You don’t have to figure it all out yourself, because there’s more information out there than you realize, and sorting through it could take you more than one lifetime. Instead, start following people who already did all the legwork, and can give you quick answers (sometimes without having to ask). The best way is to start following pundits - start with your favorite Investing.com analysts and contributors by following them. Find someone you feel you can trust and whose tone you like, and read, read, read!

Investing.com produces plenty of analysis pieces, particularly closer to earnings season. Our experts will often release several pieces of analysis a day or 2 before a corporation releases its report, so make sure you read up, and never be caught unprepared.

“It’s better to hang out with people better than you. Pick out associates whose behavior is better than yours and you’ll drift in that direction.” - Warren Buffett

What’s Next?

As you can see, there’s a lot of preparation to make before earnings season starts, and you’ll probably be reading a-lot. Don’t let it discourage you, and instead – realize that you’re getting ahead of the curve, and you’ll be armed with more knowledge than most investors. Trust in your gut feelings and remember to set your alerts.

Thank you Jesse Cohen, for helping us with this list. You can follow him on Twitter: @Bob_Loblaw420.

Do you have any more advice to share? Want to tell us a story about how such advice helped you in the past? We’d love you to share it in the forums.

Be the first to comment on

Add a Comment
Please wait a minute before you try to comment again.
Write a reply...
Please wait a minute before you try to comment again.

Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.

English (USA) English (UK) English (India) English (Canada) English (Australia) English (South Africa) English (Nigeria) Deutsch Español (España) Español (México) Français Italiano Nederlands Português (Portugal) Polski Português (Brasil) Русский Türkçe ‏العربية‏ Ελληνικά Svenska Suomi עברית 日本語 한국어 简体中文 繁體中文 Bahasa Indonesia Bahasa Melayu ไทย Tiếng Việt हिंदी
Sign out
Are you sure you want to sign out?
Saving Changes


Download the Investing.com App

Get free real time quotes, charts and alerts on stocks, indices, currencies, commodities and bonds. Get free top of the line technical analysis/predictors.

Investing.com is better on the App!

More content, faster quotes and charts, and a smoother experience is available only on the App.