The Earnings Trend for 2013

Focus: MARKETS

Louis Navellier Image Louis Navellier Editor, Blue Chip Growth and Emerging Growth

Louis Navellier discusses the latest trend in earnings, and which types of stocks and sectors he is favoring.

My guest today is Louis Navellier and we’re talking about growth and earnings and what we can expect for this year. Hi Louis, and thanks for joining me.

No, thank you.

Now, after the market burned and crashed a few years back, in 2009 when earnings started coming back, we saw some fabulous growth rates. But it’s kind of easy to do from a zero base, right? Since then, we’ve seen a little bit of a slowdown in growth...so what do you expect going forward?

Unfortunately, when earnings drop they’ve gone poof and disappeared. In the third quarter, earnings were down 0.9%. Fourth-quarter earnings are supposed to be up 3.1%, and first-quarter earnings are only supposed to be up 1.5%. The markets rally, of course, because of inflows, but the market is getting smart now; it’s all sorting this out.

Now, I don’t have an earnings problem but the market does. So like in Blue-Chip Growth I can get 12% sales growth, 22% earnings growth, so we expect it to go to quality big time. This earnings season is judgment day, and the market is getting very smart right now.

Are there particular sectors where you think the earnings are going to be better than others?

Sure. Financials are doing well, finally...you know they were horrible in 2011, they were bumpy in 2012. But when the feds said they were going to quantitative easing to infinity and Operation Twist to eternity, they kind of got going.

But we like title insurance companies more.

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