Finimize - 3️⃣ It's earnings time

Gearing up for third quarter earnings, Tesla's navigating potholes, and why Octopus punch fish |
Finimize

Hi Reader, here's what you need to know for October 3rd in 3:15 minutes.

  1. This earnings season, investors are forecasting S&P 500 companies will pump up their profits for the fifth consecutive quarter
  2. Morgan Stanley’s tips for vetting compounding stocks – Read Now
  3. Tesla announced a weaker-than-expected quarterly update

😊 We're not gatekeepers, which is why we've teamed up with Johan Jervøe, former chief marketing officer of UBS and ex-VP of Sales and Marketing at Intel, for the latest episode of the Generation Podcast. Tune in to unlock the secrets of exceptional marketing. Listen here

Setting The Stage
Setting The Stage

What’s going on here?

The third quarter’s in the rear-view, and it won’t be long before companies lift the curtain on how they’ve done.

What does this mean?

Professional analysts forecast how much companies will earn each quarter. And this time, they seem to have set the bar comfortably low. They’ve lowered their profit forecasts for S&P 500 companies by almost 4% over the last three months, compared to an average historical cut of 3%. That said, analysts still predict that companies in the index will have made 5% more profit than the same time last year – the fifth quarter of growth in a row. Just like last quarter, the number-crunchers are particularly optimistic about communication services, healthcare, and information technology firms. But they’re not expecting much from materials, energy, and consumer discretionary firms, whose profits are forecasted to shrink.

Why should I care?

For markets: Too good to be true.

Investors are expecting rising company profits and profit margins, and falling interest rates without the US economy going into recession. If that turns out to be true, great. The challenge, however, is that history suggests it won’t be. See, interest rates are usually cut when the economy’s weak, and a weak economy makes for a drop in company profits. And in the last 40 years, there’s never been profit growth and falling US rates at the same time. So if earnings growth turns out as strong as investors think, chances are that further rate cuts won’t be as forthcoming as economists think.

For you personally: Your earnings season playbook.

Remember, short-term moves are common after earnings, but plenty of stocks will level out after all the excitement. So before you make any long-term decisions, assess why the company did better or worse than expected. Then scan through the latest data to see what’s next for the company, before updating your forecasts and valuation accordingly. If you’re still sweet on the stock, you might be onto a winner.

You might also like: How to play company earnings.

Copy to share story: https://app.finimize.com/content/setting-the-stage

🙋 Ask a question

TODAY'S INSIGHT

How To Spot High-Quality Compounder Stocks

Theodora Lee Joseph, CFA

How To Spot High-Quality Compounder Stocks

Investing doesn’t have to be difficult. All you have to do is find a solid company, buy its shares, and let them work their magic.

That’s where compounding comes in. It’s a powerful force, where your gains make more gains over time.

If you invest $1,000 at a 10% annual return, for example, your money will double in seven years. Let it grow for another ten years, and you’ll have over $6,000.

But to really make this work, you’ve got to do two things: find companies that can grow steadily over the long haul (we call them “compounders”), and don’t pay too much for them.

Luckily, the analysts at Morgan Stanley spilled their secrets on how they spot those winning companies and avoid the usual traps.

So that’s today’s Insight: what Morgan Stanley says you should look out for in the hunt for the compound interest – ”the eighth wonder of the world”.

Read or listen to the Insight here

* SPONSORED BY DIREXION

Take your pick: The Magnificent − or Not-So-Magnifcent Seven

The Magnificent Seven are trailblazing potentially world-changing trends.

We’re talking all the acronyms, from AI to EVs. They’re funneling cash into disruptive technologies left, right, and center, making big bets that could turn into multi-billion-dollar ideas in the future.

Or, they could end up as absolutely massive write-offs.

Whichever way you see Big Tech’s grand ambitions panning out, you can put your money on it with Direxion’s single stock ETFs.

You can multiply your high-conviction trades with Direxion’s leveraged ETFs. Or, you could use the inverse ETFs to bet that a stock will fall in the future.

So if you have big ideas about Big Tech, you can find the trade to suit with Direxion.

Find Out More

An investor should carefully consider a Fund’s investment objective, risks, charges, and expenses before investing. A Fund’s prospectus and summary prospectus contain this and other information about the Direxion Shares. Click here to obtain a Fund’s prospectus and summary prospectus or call 866-476-7523. A Fund’s prospectus and summary prospectus should be read carefully before investing.

Leveraged and Inverse ETFs pursue daily leveraged investment objectives which means they are riskier than alternatives which do not use leverage. They seek daily goals and should not be expected to track the underlying index over periods longer than one day. They are not suitable for all investors and should be utilized only by sophisticated investors who understand leverage risk and who actively manage their investments.

Direxion Shares ETF Risks — An investment in the ETFs involves risk, including the possible loss of principal. The ETFs are non-diversified and include risks associated with concentration that results from an ETF’s investments in a particular industry, sector or company, which can increase volatility. The leveraged and inverse ETF utilize derivatives, such as futures contracts and swaps which are subject to market risks that may cause their price to fluctuate over time. The leveraged and inverse ETFs do not attempt to, and should not be expected to, provide returns which are a multiple of the return of their respective index or underlying security for periods other than a single day. The leveraged and inverse ETFs may also subject to leverage, correlation, daily compounding, market volatility and risks specific to an industry, sector or company. The non-leveraged ETFs are subject to certain risks, including imperfect index correlation and market price variance, which may decrease performance. The non-leveraged ETFs may invest in a relatively small number of issuers and, as a result, be subject to greater risk of loss with respect to its portfolio securities. The non-leveraged ETFs may experience greater fluctuation in its net asset value as compared to other investments. The non-leveraged ETFs may be appropriate for investors with a long-term investment time horizon, who primarily seek capital growth, and who are able to tolerate periods of prolonged price declines. Please read each ETF’s prospectus for a more complete description of the investment risks. There is no guarantee that an ETF will achieve its investment objective.

Distributor: ALPS Distributors, Inc. 

Finimize is unaffiliated with Direxion or ALPS Distributors, Inc.

When you support our sponsors, you support us. Thanks for that.

If you want your brand featured here, get in touch.

Stop-Start
Stop-Start

What’s going on here?

Tesla reported fewer third-quarter vehicle deliveries than expected and its stock initially dropped 5%.

What does this mean?

For the first time this year, Tesla grew the number of vehicles it delivered in a quarter compared to the previous year – but the EV giant still fell short of analysts’ forecasts by roughly 1,000 cars. To avoid posting its first-ever annual decline in deliveries, Tesla must deliver a record 516,344 vehicles by the year's end. And other challenges are mounting: Chinese competitors like BYD and Xpeng are ramping up production, bolstered by local government subsidies, while Tesla is grappling with reduced consumer spending in China and a lack of subsidies in Europe.

Why should I care?

The bigger picture: Buy the rumor, sell the fact.

Tesla delivers almost half a million cars each quarter, so a thousand here or there should be small fry – and, all else equal, shouldn’t lead to as big a drop in the stock as there initially was on Wednesday. It might be explained by short-term investors, who’ve enjoyed a 35% rally in Tesla’s stock in the last two months, cashing out to lock in their profits – and other investors getting nervous and following suit.

For markets: Two key “catalysts”.

Investors look to major events – a.k.a. “catalysts” – as opportunities to see their views on a company play out, and Tesla is revving its engine with two big ones. On October 10th, the company’s revealing its self-driving prototypes – long awaited robotaxis. Mind you, that could be a bit of a coin toss. The hope is they’ll usher in a new dawn of robotic cars, but they could be a letdown like The Homer. And it’ll be followed by earnings on October 23rd, when investors will want to see whether Tesla’s got a grip on profit margins after slashing car prices and upping incentives to beat back rivals.

Copy to share story: https://app.finimize.com/content/stop-start

🙋 Ask a question

QUOTE OF THE DAY

"There is nothing impossible to him who will try."

– Alexander the Great (an ancient Greek leader)
Tweet this

Be first to hear what Finimize (and our analysts) are doing next

Become a Finimize Insider to beta-test new features and read exclusive research ideas from our analysts.

You’ll see it before anyone else does. And round here, honesty’s the best policy: give us direct feedback via email and WhatsApp, and you could impact the future of Finimize.

A serious task, if you’re up for it. Sign up for our beta testing to unlock Finimize 2.0.

Sign Up

🎯 On Our Radar

1. The quest for the good life. There’s a growing cult of wellness in Toronto.

2. Bitcoin’s big news. You can trade the most popular cryptocurrencies without fronting big prices with these micro-sized tools.*

3. Boxers deep down. Here’s why octopus punch fish.

4. Time to take your first steps. Here's how to get started on your investment journey.**

5. A not-so-magical moment. One writer’s experience of auditioning for Harry Potter.

**Your capital is at risk. 69% of retail investor accounts lose money when trading CFDs with this provider. You should consider whether you can afford to take the high risk of losing your money.

When you support our sponsors, you support us. Thanks for that.

🌍 Finimize Live

🤩 Grab your tickets...

All events in UK time.
♟️Game-Changing Strategies For Options Traders: 5pm, October 15th
🇺🇸 US Election Special: What Investors Need To Know Before Voting: 5pm, October 29th
🇺🇸 US Election Special: The Landscape, Regardless Of Who Wins: 5pm, November 7th
🚀 2024 Modern Investor Summit: 2pm, December 3rd

Thanks for reading Reader. If you liked today’s brief, we’d love for you to share it with a friend – here’s a link: Share this email

You stay classy, Reader 😉

Any thoughts on today’s email? Give feedback

Want to advertise with us? Get in touch

Image credits: Midjourney | Midjourney

Preferences:

Update your email or change preferences

View in browser

Unsubscribe from all Finimize Emails

Crafted by Finimize Ltd. | 280 Bishopsgate, London, EC2M 4AG

All content provided by Finimize Ltd. is for informational and educational purposes only and is not meant to represent trade or investment recommendations. You signed up to this mailing list at finimize.com or through one of our partners. © Finimize 2024

View Online

When you support our sponsors, you support us. Thanks for that.

Older messages

📉 Oil's price could tank

Tuesday, October 1, 2024

Oil prices look set to tumble, Europe might see more rate cuts, and your guide to Micro futures | Finimize TOGETHER WITH Hi Reader, here's what you need to know for October 2nd in 3:07 minutes.

⚔️ Netflix, Amazon, prepare for war

Monday, September 30, 2024

China stocks go on a rally, a big television merger, and a French castle for sale | Finimize TOGETHER WITH Hi Reader, here's what you need to know for October 1st in 3:15 minutes. Chinese stocks

🇺🇸 US jobs data could prove the Fed right

Sunday, September 29, 2024

Plus, everything you need to know for the week ahead | Finimize 👋 Hi Reader. Here's what you need to know for the week ahead and what you might've missed last week. States Of Affairs The

👀 Investors broke a fund record

Friday, September 27, 2024

Investors made an unconventional decision, Japan's stock market tumbled, and tips for making friends as an adult | Finimize TOGETHER WITH Hi Reader, here's what you need to know for September

🤖 OpenAI's in it for profit

Thursday, September 26, 2024

Open AI wants to ditch the "non" in nonprofit, China's stock rally kept, uh, rallying, and monkeys predict the US election | Finimize TOGETHER WITH Hi Reader, here's what you need to

You Might Also Like

Longreads + Open Thread

Saturday, December 21, 2024

Inflation, AI, Linkrot, Data, Research, Pod Shops, Life Advice, Nvidia Longreads + Open Thread By Byrne Hobart • 21 Dec 2024 View in browser View in browser This issue of The Diff is brought to you by

Post-Election Market Warning: Here's what's next...

Saturday, December 21, 2024

Urgent warning issued... ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

⭕️ A tech play with a nice ring to it

Friday, December 20, 2024

Finimize TOGETHER WITH Hi Reader, here's what you need to know for December 21st in 3:07 minutes. Novo Nordisk shares slimmed way down as investors felt disappointed by the firm's latest

Imagine finally becoming a homeowner

Friday, December 20, 2024

Find the mortgage lender that fits your needs and wants ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌ ͏‌

Check, Please

Friday, December 20, 2024

The Business of Restaurant Payments ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

The Market Rally Indicator Just Turned Green

Friday, December 20, 2024

Free Stock Ticker Inside ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏ ͏

⚔️ Google's AI competition

Thursday, December 19, 2024

Perplexity tripled in value, the greenback hit a two-year high, and your holiday party playlist | Finimize TOGETHER WITH Hi Reader, here's what you need to know for December 19th in 3:02 minutes.

John's Take 12-19-24 The Impending Crash

Thursday, December 19, 2024

​ The Impending Crash by John Del Vecchio The other day I received a question from a subscriber, and I wanted to answer it in this space because it's a great question. I figure if one person is

☕ A Decade of Women and Money

Thursday, December 19, 2024

Why it can be hard to notice change when you're living in it. ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌  ͏ ‌

The Bank Underground Christmas Quiz 2024

Thursday, December 19, 2024

Before Bank Underground goes off on its Christmas holidays, it's time for the Annual Bank Underground Christmas Quiz! We hope you enjoy testing your knowledge on our festive themed questions on