Earnings are beating expectations at a record pace, yet stocks are not following suit. According to data from Bloomberg, stocks beating expectations have underperformed the S&P by an average of 0.1% on the day earnings are released.
Why? It all comes down to expectations.
The earnings beats were already priced into most of the biggest names in the market. Plus, we know that Wall Street analysts understate their estimates to make it easier for the companies they have BUY ratings on to beat. So, beating estimates is no longer enough to drive stocks higher.
Want to learn what really drives stocks higher?
In our latest Live Earnings watch, we discuss the real profits and expectations for future profits for Hyatt (H), Warrior Met Coal (HCC), Deere (DE), DraftKings (DKNG), GoDaddy (GDDY), and Airbnb (ABNB).
This is your chance to see how New Constructs views earnings – not a salesman posing as an analyst.
Topics covered include:
- Hospitality throwdown: how do Hyatt and Airbnb compare?
- Bet the house? See what our model says about DraftKings’ profitability and the expectations for future profits baked into its current stock price.
- Let’s see what the future holds for GoDaddy – and assess its risk/reward.
Get replays on all our training sessions, podcasts, reverse DCF case studies, and more in our online community. Its free to join – just complete this form.
More Earnings Watch Parties Next Week
Register here.
- Wednesday at 12pm ET
- Thursday at 4pm ET
- Friday at 3pm ET
Request the stocks you want us to cover at support@newconstructs.com.
This article was originally published on February 15, 2025.
Disclosure: David Trainer, Kyle Guske II, and Hakan Salt receive no compensation to write about any specific stock, style, or theme.
Questions on this report or others? Join our online community and connect with us directly.