Thank you to everyone who joined us early this afternoon big energy bet event! I’m glad you’re here. There was certainly a lot to cover, such as why certain small-cap stocks within the energy sector would start surging 10x or more. I’ve also revealed the No. 1 energy stock recommendations, completely free.
If you missed it, you can watch the rebroadcast here.
After the stock market has been around for about 12 months, it’s easy to turn negative. All major indices ended the year significantly lower than they started the year.
But as always, we encourage you to stay positive and not listen to the fear-mongering media.
The earnings season will begin in earnest next week, with the big banks being the first to report. And we’re already seeing evidence that earnings are working…
Case in point: Lam Weston Holdings (LW).
Prior to the opening bell today, Lam Weston announced better than expected results for the second quarter of fiscal 2023, and as a result, the company has raised its full-year 2023 outlook. -$1.28 billion year-over-year, adjusted earnings increased 171% year-over-year to $185.4 million, or $1.28 per share. Consensus estimates called for him to earn $0.74 per share on sales of $1.15 billion, so Lam Weston squashed earnings expectations by 73% and posted an unexpected turnover of 11.3%.
In the first six months of the fiscal year, Lam Weston noted revenue of $2.4 billion, up 21% year over year, and adjusted earnings of $2.04 per share, up 219% year over year. .
Lam Weston now expects full-year 2023 revenues of $4.8 billion to $4.9 billion and adjusted earnings per share of $3.75 to $4.00. Total revenue for fiscal 2022 is $4.01 billion and adjusted earnings per share is $2.08.
LW’s share price surged more than 9% today to a 52-week high, following a strong report and positive earnings and sales outlook for 2023.
Obviously, when profits work, they dropkick stocks and send them higher.
then today Market 360what to expect heading into earnings season, and why certain sectors are poised to perform exceptionally well this earnings season.
But the elephant in the room cannot be ignored. Here are the minutes from his December Federal Open Market Committee (FOMC) meeting just released yesterday. Federal Reserve actions and forecasts also determine the short-term direction of stocks. So let’s take a quick look at the FOMC minutes.
Inflation and the Fed
Yesterday, the minutes of the December FOMC meeting were released.
As you may recall, last month the Fed raised key interest rates by 50 basis points. This compares with his 75 basis point rate hikes experienced at the last four meetings. The Fed official also raised inflation expectations, raising his moderate forecast for personal consumption expenditures (PCE) at the end of 2023 to 3.1%, compared with his 2.8% forecast in September.
Bottom line: The minutes revealed that Fed officials agreed that inflation was still “unacceptably high.”
The next FOMC meeting is scheduled for February 1, making the FOMC statement much more important than a major rate hike. In fact, the Fed is nearly in line with market rates, so future interest rate hikes should be minimal and his next FOMC statement should indicate that we are nearing the end of a major interest rate cycle. am.
And if the Fed pivots, that would be good news for stocks.
In the meantime it’s important that we stay focused fundamental blue chip stocks Outperform in current market conditions. In this case, energy stocks.
my favorite time
As we all know, earnings season is my favorite time of the year. It’s time to separate the weak from the herd and it’s time to invest. inherently good company It really pays off.
What this means is that we good foundation to succeed. And now it’s the energy sector.
Consider this: FactSet now predicts that the S&P 500 will report a 2.8% earnings decline in the fourth quarter, but the energy sector is still expected to post 64.4% earnings growth. Without energy, the decline in S&P 500 earnings would be even greater, a 7.3% decline.
That’s good news for energy stocks.
Outside of energy, no sector in the S&P 500 is projected to have positive earnings growth, so it’s a slim choice when looking for stocks with strong sales and earnings.
In today big energy bet eventfurther elaborated on why I believe the energy sector will be the dominant force for the U.S. economy, and indeed the world at large, over the long term.
Plus, we shared the best opportunities in this space. This includes everything from free stock picks, ticker symbols, and more.
If you miss this afternoon’s event, it’s never too late. Click here for the rebroadcast.
PS tomorrow, January breakthrough stock monthly magazineI’ll go into more detail on why I’m bullish on the energy sector.
Click here for details breakthrough stock – And access our January monthly issue as soon as it releases tomorrow – click here.
The editor hereby discloses that as of the date of this e-mail, the editor owns, directly or indirectly, the following securities: Below is the essay.
Lam Weston Holdings (LW)