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The Earnings Divergence Opportunity

Hey, Ross here:

Stocks had another winning day yesterday.

Yes, whether and when the rate cuts will happen is a huge factor influencing the direction of the markets.

But let’s not forget the fundamentals – earnings.

Chart of the Day

As a quarter progresses, analysts revise their earnings estimates.

And typically, in the first month of a quarter they reduce them.

But as this chart shows, for the first time since the fourth quarter of 2021, analysts have actually increased their earnings estimates for S&P 500 companies…

And this is amid all the doom-and-gloom about a slowing economy and the recession they said would happen two years ago.

Don’t let the pessimism get to you.

And more importantly, don’t let it stop you from going after the opportunities available in the market right now.

Insight of the Day

If earnings estimates are increasing at the same time the market is falling – this a divergence opportunity.

Analysts increased their earnings estimates during April – when the market was falling.

This is a divergence – one that creates an opportunity we can exploit…

Because it signals that the market is likely to keep going up from here.

Of course, we’re not interested in targeting merely average returns – even if they’re positive.

We want to do better – much better.

And just as how earnings help point toward the direction of the market…

They can also point toward big opportunities in individual stocks.

How? By studying how the corporate insiders – high-ranking executives who know everything about their own companies – are reacting to the earnings moves.

I’ll  be explaining this more in my LIVE masterclass later today at 3 p.m. Eastern.

By the end of this masterclass, you’ll know exactly how to follow the insider money into stocks that could make the biggest moves this earnings season.

So if you haven’t already, make sure you click here to secure your spot for my live masterclass…

And watch out for the login details in your inbox before it starts.

I’ll see you later today at 3 p.m. ET.

Embrace the surge,

Ross Givens
Editor, Stock Surge Daily

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Ross Givens
Ross Givens

I bought my first stock when I was 12 years old. It was Microsoft. I’ve been a registered financial advisor. I’ve worked as a stock broker. I ran a managed fund. I was a Vice President at JP Morgan with Series 7, Series 66 and Series 3 securities licenses. I’ve been featured on Fox Business, CNBC, Bloomberg, and a bunch of other networks. The only thing I enjoy more than making money, is helping YOU make money.

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