Results vs. expectations đź”®
Previous earnings declines. Earnings per share have fallen 21-52% from peak to peak over the last 4 recessions. Estimates are down only 1% this year (Figure 1).
Earnings matter. Finally, let's look at the performance of stocks based on how earnings compare to estimates (Figure 2).
Let's see how this week turns out. $ZM (+6.63%)
$JD (-1.26%)
$DELL
$PTON (+4.39%)
$CRM (+2.01%)
$SNOW (-1.54%)
$NVDA (-2.22%) (Figure 3).
Source: https://www.researchaffiliates.com/publications/articles/808-value-in-recessions-and-recoveries
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