Latest posts by Jeff Moser, CFA (see all)

    Key takeaways:

    • The recent short-term trend whereby stock prices have not initially responded as favorably to earnings surprises is likely temporary. If a company’s share price doesn’t react to a positive earnings surprise and good guidance, that could be an indication that the stock is underappreciated and undervalued.

    The early-February market selloff was the largest weekly decline in two years. Intraday volatility was significant, with opening rallies concluding in selloffs and opening selloffs rallying into the close. Multiple factors contributed to the market swings, including elevated valuations, exuberant investor sentiment, and aggressive investor positioning. While many investors no doubt found the weeklong market fluctuations jarring, it’s important to remember that opportunities may be created by rocky market conditions. In this blog post, we’ll delve into those potential opportunities, with a focus on fundamentals.