Announcer:
4 Your Money is brought to you by Nelson Corp Wealth Management.
Brandy Auterson-Hurst:
It’s now time for 4Your Money. We’re joined by David Nelson, CEO of Nelson Corp Wealth Management. Welcome back, David.
David Nelson:
Thank you. Happy to be here.
Brandy Auterson-Hurst:
So we’re right in the middle of earning season. What are you seeing in the numbers so far?
David Nelson:
Well, yes, you’re right. It’s the middle of it. And one of our favorite times of the year is when we’re talking about quarterly earnings coming about. It basically cuts through a lot of noise. It gives us a real read in how corporate America’s actually doing.
My chart today, I think will give people a really nice visual as far as it tracks the percentages of companies that are raising guidance versus lowering them. And what we see here is that 59% of the companies are raising their guidance, which is above the five-year and 10-year average for earnings estimates. In fact, it’s the strongest trend that we’ve seen since 2021. And so while the headlines have been pretty scary lately, the people who actually run these businesses are seeing a more optimistic signal.
Brandy Auterson-Hurst:
Okay. So what should investors take away from this?
David Nelson:
Always a good sign, but history, when we’ve seen gaps like this as far as in the projections versus prior projections, this has typically been a very good sign as far as for stocks looking out 10 to 12 months as far as down the road. So I’m fairly optimistic as far as even considering the period of time that we find ourself in, but these numbers look really, really good as far as that are coming out. And I think folks can maybe exhale a little bit as far as with some of the happenings around the globe.
Brandy Auterson-Hurst:
All right, David, thanks for your insight today.
David Nelson:
Thank you.
Brandy Auterson-Hurst:
If you missed any of our discussion, we’ll make it available for you on ourquadcities.com.