Hey, Ross here:
Yesterday I talked about how this rally is catching everyone off guard…
And how there’s likely still more gas in the tank.
Today, let’s look at where a lot of that gas is coming from.
Chart of the Day
This chart shows the consensus operating earnings per share for the S&P 500 for 2024 till 2027 (projected earnings).
As you can see, forward earnings keep rising…
And considering that forward earnings are probably one of the best leading indicators of stock prices…
It tells us there’s still plenty of juice left in this market.
And it’s not just the large-cap companies in the S&P 500 – it’s all across the board, including small-caps and mid-caps.
But the opportunity will not be evenly distributed.
Fortunately, there’s one powerful way to identify the biggest areas of opportunity.
I explain below.
Insight of the Day
Very often, the companies themselves will tell you what they think of their own stock.
Take a look at this chart.
It breaks down which sectors are executing stock buybacks over the quarters.
As you can see, it shifts every quarter.
Stock buybacks usually occur when the company deems its own stock as undervalued…
Meaning a “map” like this can tell you which sectors could hold the best bargains right now.
But do you know what’s even more useful – and more specific?
Following the footsteps of the corporate insiders…
High-ranking execs using their own personal money to bet on their company stock (often before big market-moving announcements).
And they love doing it during earnings season, especially by taking advantage of post-earnings drops.
That’s why following the insiders is one of the smartest things you can do right now.
I’ll share more about that tomorrow morning, so keep an eye out for that.
Customer Story of the Day
“Ross is a minefield of knowledge…
Really enjoying his live sessions – a lot of information to process being new enough to the game.
But I’m enjoying the teaching style as he breaks things down well and says it how it is – no fluff no messing about.
This man knows his onions recommend 10/10”
Ross Givens
Editor, Stock Surge Daily
