In the spreadsheet above I have tracked the earnings estimates for the top weighted Russell 2000 small cap stocks. I have columns for what the 2019 and 2020 estimates (if available) were: 3/15/2019, 5/1/2019 and today. The column under the date 7/1/2019 has a letter that represents the movement in 2019 earnings estimates since the most recent print (5/1/2019). “U” means 2019 estimates are UP in the last 61 days. “D” means 2019 estimates are DOWN in the last 61 days. “S” means 2019 estimates have remained the SAME in the last 61 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 estimates have come up nicely in the past 61 days. More estimates went UP for 2019 in the past 61 days than came DOWN 15:10 UP:DOWN ratio. The rest remained the same.
The cumulative 2019 earnings power of these 29 stocks climbed by 1.78% in the past 61 days. This is constructive.
Eight weeks from now, this list of stocks will change as the Russell 2000 re-balanced on Friday. We kept the old weights today for an apples to apples comparison.
