The day after the earnings news hit Wall Street, FB shares spiked 15.5%.
The earnings growth by FB last quarter, as well as over the past several years, has put it among the market’s most elite earnings powers, which has allowed the stock to capture an EPS rating of 98 (better than 98% of all other publicly traded companies).
That growth has been rewarded with a RS rating, or relative price strength rating, of 96. That means the shares have outperformed 96% of all other public companies over the past 52 weeks.
These strong ratings, along with the positive news flow, or what I call “NewsQ”, lead me to suspect there would be a strong Q4 for Facebook.
That assessment helped me put it on the Next Week’s Winners buy list in early January, even as the broad market crumbled all around us.
Subscribers to my service now hold FB shares with a gain of nearly 11% and climbing… while those who own the broader NASDAQ 100 stocks, or Qs, are staring at a loss of more than 8% over the same time period.
That’s the power of strong fundamentals; strong share price performance and positive NewsQ—and those are the key factors fueling the selection criteria in the Next Week’s Winners advisory service.