We’re entering a historically strong month for the stock market, and part of that is because Americans generally rejoice this time of year as we get together with family and friends to celebrate Thanksgiving.
This sense of “goodwill” also tends to rub off on Wall Street, energizing the stock market, as we have seen in recent weeks.
The S&P 500 closed on Thursday at a new high and was up for the seventh consecutive positive day, delivering a great start to November. The NASDAQ Composite also closed at a new high and is up for the tenth consecutive trading day.
In October, the S&P 500 soared nearly 7% and the Dow Jones Industrial Average increased by about 5.8%.
Consider this: With the impressive performance of the S&P 500 in October, the index rose 22.6% in the first 10 months of 2021. According to our friends at Bespoke, this is only the tenth time that the S&P 500 has climbed more than 20% per year. so far through October since 1928. In the previous nine cases, the S&P 500 continued to climb in November, posting a median gain of 3.24%.
This is the good news. The good news: November, December and January are historically the three best months for the stock market. In fact, the Dow Jones Market Group reports that the S&P 500 and the Dow both gained around 3.4% in that three-month period, while the NASDAQ tends to recover 6.3%. So we have three months of seasonal strength ahead of us!
Essentially, we are in the midst of a renaissance era for powerful growth stocks, which are increasingly emerging as market leaders as a result of their positive quarterly results. Smart Money now hunts fewer stocks and focuses primarily on those that are able to maintain accelerating earnings and sales dynamics in today’s environment.
The reality is that the third quarter earnings reporting season revealed which companies performed spectacularly in the last quarter, which will be able to maintain this strong earnings momentum going forward, and which will not. not. Companies supported by higher fundamentals steal the show, and institutional and individual investors refuel before the end of the year.
We have seen this happen in several of our Accelerated profits positions, as they rebounded strongly following better than expected results.
This is the beauty of my Project Mastermind System in a word. Essentially, it’s a cutting-edge artificial intelligence (AI) stock tracing system that leverages math and computers to identify stocks that are ready for explosive runs.
Let me show you some recent examples that illustrate my point.
To take Atlassian Corporation Plc (NASDAQ:TEAM).
The company, named after the Greek Titan, is a global software company focused on providing tools and resources that promote teamwork and collaboration. The company’s business really took off in 2002 with the introduction of Jira 1.0.
A few of its products include Jira Software, a software development tool used to prioritize and assign tasks; Atlassian Access, an identity and security tool for the Atlassian cloud infrastructure; Statuspage, a tool for tracking incidents and the process for rectifying issues; Confluence and Trello, software that allows teams to create and share projects in the same space; and Bitbucket, Bamboo, Crucible, Fisheye, and Sourcetree, products used to create software and improve coding.
Overall, Atlassian products are used by 83% of Fortune 500 companies, and it has 180,000 customers in more than 190 countries around the world. The company also has 10 million monthly active users for its Atlassian cloud products. So it’s no surprise that Atlassian’s business is booming.
Indeed, the shares of this fundamentally superior company surged recently after announcing a better-than-expected earnings announcement on October 28.
For its first quarter of fiscal 2022, TEAM reported earnings of $ 118.3 million, or $ 0.46 per share, compared to $ 76.8 million, or $ 0.30 per share, in the same quarter one year ago. First quarter revenue increased 34% year-over-year to $ 614 million. The analyst community expected earnings of $ 0.40 per share on revenue of $ 582.32 million.
TEAM also noted that it ended the first quarter with 216,500 customers, after adding 11,746 new customers during the quarter.
Looking ahead to the second quarter of fiscal 2022, TEAM expects total revenue of between $ 630 million and $ 645 million and earnings per share of $ 0.35 to $ 0.38. This compares to a profit of $ 0.37 in the second quarter of 2021.
My Project Mastermind System reported the stock and recommended it to my Accelerated profits subscribers September 28.
Following the exceptional results announcements of the company, the stock is up nearly 8% in the Accelerated profits wallet. Compare that to the 3% gain for the NASDAQ and the 2% gain for the S&P 500 over the same period.
Another example: InMode Ltd. (NASDAQ:INMD).
Over 20 years ago, the company was founded by a group of doctors and scientists who developed light, laser and radio frequency devices for several minimally invasive procedures, including body and face reshaping, hair removal, liposuction, skin tightening, facial skin rejuvenation, wrinkles. reduction, muscle stimulation and reduction of fat.
On October 26, InMode announced record third quarter results.
The Israeli company’s third-quarter revenue climbed 58% year-on-year to $ 94.2 million, with surgical technology platforms accounting for 73% of quarterly revenue. Analysts expected third-quarter revenue of $ 89.26 million.
Third-quarter profit jumped 77.4% year-on-year to $ 0.55 per share, from $ 0.31 per share in the same quarter a year ago. Analysts were looking for earnings of $ 0.50 per share, so InMode posted a 10% surprise.
Going forward, InMode expects annual revenue of between $ 343 million and $ 347 million and earnings per share of between $ 1.91 and $ 1.93. This represents an increase from earnings of $ 1.05 per share and revenue of $ 206.11 million in fiscal 2021. This forecast is also well above analysts’ current expectations for profit. annual sales of $ 1.86 per share and sales of $ 341.03 million.
The company’s stock has climbed nearly 10% since the release of its third quarter results, handily surpassing the 5% gain for the NADAQ and the 2% gain for the S&P 500.
Project Manager spotted INMD and recommended it to my Accelerated profits subscribers April 27. Since then, the stock has climbed more than 113%, compared to the NASDAQ’s 14% gain and the S&P 500’s 13% rise over the same period.
Of course, with the expected earnings and profit gains, I expect these stocks to continue to climb.
As you can see above, they both earn an “A” for the total grade in my Portfolio filing cabinet, as well as an “A” for their quantitative ratings, which represents institutional buying pressure under stocks.
The bottom line: Investors are now putting fundamentals first, and my Accelerated profits stocks are perfectly positioned to take advantage of this change.
PS Of course, Atlassian and InMode aren’t the only titles I like right now.
In fact, my Project Mastermind System recently spotted another fundamentally superior action who shot all the cylinders.
His latest results announcements have been astounding. The company reported double-digit profit and sales growth from the previous year and exceeded Wall Street expectations in terms of revenue and bottom line.
The stock has risen to triple digits this year and I expect its higher fundamentals will help maintain higher trekking actions.
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The Publisher hereby declares that as of the date of this email, the Publisher owns, directly or indirectly, the following titles which are the subject of commentary, analysis, opinions, advice or recommendations in, or otherwise mentioned in, the essay presented below:
Atlassian Corporation Plc (TEAM), InMode Ltd. (INMD)
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