Historically, the volatility index (VIX) rises during economic data releases and the company earnings season. Your traders will need extra support to navigate the increased volatility to make the most of trading opportunities. The Q3 2024 earnings season has begun. Equipping your traders with relevant information and the necessary tools to augment their trading strategies can boost trading experiences and increase trading activity on your platform.
What to Expect This Earnings Season (Q3 2024)
After growing for five consecutive quarters, the S&P 500 is forecasted to register 4.6% y-o-y growth in the third quarter 0f 2024. IT, healthcare and communication sectors are expected to have grown the most compared to Q3 2023 while energy is expected to report the highest decline in earnings.
Markets weigh-in on the anticipated earnings in advance and your traders need to tweak their strategies accordingly. They need to know the key stocks to follow, for example, the bellwethers for each industry, and projections for the securities of their interest. Some of the key earnings to watch for this season are:
- Alphabet (October 24), Meta (October 30), Apple (October 31), and Nvidia (November 11) from the technology sector.
- Pfizer (October 29), Novartis AG (October 29), and AbbVie (October 30) from the healthcare industry.
- NextEra Energy (October 22), First Solar (October 29), and Exxon Mobil (November 1) in the energy sector.
Corporate and Economic Calendar
A corporate calendar lists the dates and often consensus estimates for the upcoming earnings season. An economic calendar, on the other hand, lists the details of upcoming economic data releases.
Traders can keep track of relevant information, and even use the two together to speculate how an economic event may impact the guidance issued by a company. Notification facilities and AI-powered insights on corporate actions make Acuity’s Economic and Corporate Calendars valuable additions to your trader toolkit.
Consensus Estimates
Traders tend to incorporate expected earnings into their strategies. EPS and revenue estimates from expert analysts can guide their trading decisions.
Additionally, combining consensus estimates with AI-powered analytics data can enhance decision-making. Acuity’s AssetIQ offers asset-by-asset analyses, benchmarking each against their previous performance and industry bellwethers to elevate the trading experience on your platform.
Real-Time Updates
Right before and after an earnings report, the volatility in a company’s stock price increases significantly. This holds true for the post-reporting earnings call and guidance meeting as well. As soon as the earnings report is out, traders need to verify whether their speculation was right and compare the consensus estimates with the actual data. The quarterly and annual forward guidance also affect market sentiments significantly.
Furnish your traders with EPS, revenue, P/E ratio, dividend and operating margin data in real-time to allow them to take advantage of emerging market opportunities. Companies often club earnings with major announcements, such as a stock split, dividend changes or product launches, which also impacts share price movement.
Provide real-time updates with transparent signals and clear calls-to-action with Acuity’s AnalisysIQ. The tool offers high-quality updates from an FCA-regulated source. It offers detailed insights on the risk/reward for each trading opportunity to allow your traders to manage their market risk effectively.
Alternative Data
Market sentiment data via alternative channels, such as social-media discussion portals, news reports and trader communities, is valuable for informed decision-making.
This data can offer insights and help traders discover unique opportunities. However, traders might not be able to sift through the multitude of resources to discover relevant news themselves. They might not be able to gauge the reliability of alternative sources either. Acuity’s NewsIQ, in combination with AssetIQ’s opportunity score, prove useful in improving decision-making.
Leverage a Comprehensive Suite of Analysis and Opportunity Solutions
Each type of information is individually important. However, combining them with technical analysis can help your traders develop powerful strategies.
For instance, on average a company’s share price might increase by about 18.33% in the 12 months after a stock split. This is usually much lower than the earnings a company registers before a split. Q3 2024 will be Nvidia’s first whole quarter after it executed its stock split on June 7, 2024. Historically, the company has performed poorly after a split.
However, the AI industry’s remarkable growth and potential indicate otherwise. The AI momentum can be estimated from the earnings of companies reporting before the leading chipmaker to further empower traders to make informed decisions.
Support your traders with Acuity’s Research Terminal to access relevant insights and real-time updates and use technical analysis to trade their chosen securities confidently. It presents analyses in customisable and digestible formats. The widgets and the Research Terminal integrate seamlessly with any broker platform, allowing your traders to enjoy the benefits almost immediately.
Efficient decision-making with all data consolidated on a unified dashboard significantly improves their trading experience and speed to take advantage of market opportunities by entering and exiting at the right time.
Acuity also offers a dynamic, personalised email service that updates the information and data according to the time it is opened. This can be a game changer to differentiate your brokerage with real-time insights and targeted recommendations, suitable for when the user opens the mail.
Schedule a personalised demo to learn how you can elevate your traders’ trading experiences during the earnings season.
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