In the spreadsheet above I have tracked the earnings estimates for the top 30 weighted Russell 2000 small cap stocks. I have columns for what the 2019 and 2020 estimates (if available) were: 11/22/18, 12/22/2018, 1/22/19 and today 2/13/2019. The column under the date 2/13/19 has a letter that represents the movement in 2019 earnings estimates since the most recent print (1/22/19). “U” means 2019 estimates are UP in the last 22 days. “D” means 2019 estimates are DOWN in the last 22 days. “S” means 2019 estimates have remained the SAME in the last 22 days. The column entitled “1yr Target Est” is the Wall Street consensus 12 month price target for each stock. You can see how it has come up or come down in recent weeks.
What this table is telling us so far is that despite the dramatic dislocation in price in December, estimates have remained relatively stable so far. In contrast to the DOW+8 and Nasdaq (top 30 weights), more estimates came UP for 2019 in the past 22 days than came down 8:3 UP:DOWN ratio. The rest remained the same. We now need to digest the January gains and then see where estimates are in coming weeks.
If you want to contrast this to the DOW + 8 and Nasdaq (top 30 weights) which had more revising down than up, you can review those recent posts here:
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