Lecture Notes: Stock Screening and Earnings Analysis

Introduction

• Overview of earnings season and stock reactions
• Importance of ensuring the right stocks are on the watchlist
• Emphasis on fundamentals and technicals without personal bias

Fundamental Approach

• Focus on companies with increasing revenues and earnings
• Big portfolio managers seek growth in revenues and earnings

Screening Process

• Screening Tool: Finviz (Elite version)
• Screening criteria:
  • Earnings surprise: Positive (>0)
  • Custom earnings date: April 1st to current
  • Short float: >10%
  • Price above 50-day and 200-day moving averages
  • Beta: More volatile than the market
  • Optionable stocks
  • Average daily volume: >500,000 shares over the last 20 days

Stock Selection and Analysis

• Initial Screening Outcome: Reduced from 10,026 to 66 stocks
• Further Narrowing: Focus on charts without technical lines
• Final List: 11 stocks selected for further study

Stocks of Interest

• ADPT: In uptrend, potential inclusion in watchlist
• BCRX: Strong weekly chart, potential after consolidation
• BROS: Requires pullback, good fundamentals
• CAKE: Consolidating, rising moving averages
• HALO: Needs to settle
• IONQ: Volatile, needs more stability
• LFMD: Consolidation potential
• OPFI: Requires settling post-rally
• PARA: Long-term base, potential interest
• QTWO: Needs to settle down
• RIVN: Holding well, potential day trading
• ROOT: Choppy but manageable risk

Observations

• Screening process focuses on identifying stocks with positive earnings reports and potential for growth
• Emphasis on recent company performance post-earnings
• Attention to technical indicators like moving averages and volume

Conclusion

• Screening as a method during earnings season
• Creation of a master list for ongoing observation
• Plans to share detailed notes and observations via upload

Additional Comments

• The process was demonstrated using FinViz
• Screening allows for a rapid narrowing down of potential investments
• The criteria focus on liquidity, volatility, and fundamental earnings performance
• Focus on recent earnings to ensure relevance of financial data