Actionable ETF Idea: Time For Revenue Weighting

The last two earnings season have seen a familiar pattern play out: companies of all shapes and sizes are consistently beating Street estimates on earnings, but falling short on revenue forecasts. In many cases, revenue is coming out either flat or even down compared to the same period in the prior year. There’s a growing list of companies that fit this description, including Merck, Eastman Chemical, Starwood Hotels, and AT&T this week alone (AAPL was one of the few companies that flipped this scenario, beating on revenue but falling short on the earnings side) [see Free Report: How To Pick The Right ETF Every Time]. These earnings reports have generally allowed markets to hold their year-to-date gains, as investors continue to give primary focus to EPS and less weight to revenue. But many believe it is setting the stage for steep declines ahead. While earnings can be given a short term [...] Click here to read the original article on ETFdb.com. Related Posts: Talking Revenue-Weighting, Alpha-Generating ETFs With Sean O’Hara Are Your Cap-Weighted ETFs Leaders Or Laggards? Revenue Weighted ETFs Continue Impressive Run Weighting Methodologies: An ETF Report Card Revenue-Weighted ETFs: A New Twist On an Old Drink