As we dive deeper into earnings season, it’s critical to understand the impact that individual companies, particularly the effect that crucial stocks in major sectors have on the stock market itself. Even if you’re not interested in trading options on earnings, it’s still important to have a gauge on when and where these reports are occurring, and more importantly, to pay attention to key factors noted by the executives in the meetings.
The companies I’m particularly interested in are generally going to be the companies with the largest market cap, that are unique, leaders in their fields and sectors. The way in which these companies manage during any time, particularly trying times like these, is critical. The idea is that if the biggest, most well-known, and popular companies in their sector or industry group are struggling, then what hope do the little guys have?
Some factors, especially this quarter, that are impacting earnings, including EPS, revenue, and future guidance include:
- The rising dollar
- High inflation
- Supply chain issues
- High fuel costs
- Bear Market
- Crypto Crash
- …and more!
However, there are some companies that are shining stars, despite the ongoing economic circumstances. Tractor Supply is one of them. Now, I had never even been to a Tractor Supply until I moved to rural Texas and decided to raise baby chicks and plant a large garden, but I’m glad my life changes have turned me onto this company that is very popular and favored in areas like the one I live in.
But, it’s not just the chicks, it’s a variety of technical and fundamental factors that have turned me on to the company. Check out the video below to learn more!
Trading Tractor Supply Earnings, with @traderDanielle https://t.co/8ouNWHLU9H$TSCO is a diamond in the rough for me and I like the stock to the upside here. Let’s talk about why along with some key levels. #options
— Simpler Trading (@simplertrading) July 18, 2022
It has earnings coming up this Thursday, July 21st, where we’ll get a chance to learn more about how they are doing. I’m betting they are going to do well!