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CHART OF THE DAY: GIVING A NEW DEFINITION TO “BEAT AND RAISE”

Today’s chart of the day comes courtesy of Bespoke Invest.  The percentage of companies that have beaten guidance this quarter is a remarkable 85%.  The number of firms that have raised their guidance is an even more remarkable 20%.   As we mentioned before earnings season began, the analysts are just far too negative about the prospect for earnings going forward.  Although I would expect this percentage to decline in the coming weeks I would still expect a high percentage of beat and raises which likely means there are significant analyst upgrades and price target increases coming down the line.  This remains a difficult environment in which to get short.

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Source: Bespoke