On April 27, we learned that our Earnings Surprise model correctly predicted Meta’s earnings beat for Q1 of 2023. You can take a look at a summary of what happened in our LinkedIn post from April 28.
What Others Were Thinking:
To start 2023, Meta Platforms faced significant skepticism. Forbes had reported Meta as the S&P 500’s Worst Performer of 2022 with losses of nearly 75%, and Wall Street Journal included Meta as one of the companies to record their worst years on record, according to Dow Jones Market Data.
The BAS Advantage:
In contrast to the common wisdom around the investing community, the Burney Advisor Services (BAS) Earnings Surprise Model indicated a Buy rating for January and February.
The Earnings Surprise Model is one of 4 analytical stock scoring models utilized by BAS to help support advisors with active equity. It identifies companies most likely to report positive and negative quarterly surprises.
Results for BAS Supported Advisors:
BAS-supported advisors were advised to purchase META in their portfolios in January and February of 2023. On 4/26/2023, Meta reported the Beat anticipated by BAS’ Earnings Surprise Model. Meta gained over 13% the day after the release of the earnings report.
Your Next Step:
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Disclaimer: The illustration discussed herein does not include investment advisory fees or trade execution expenses and is not intended to constitute specific investment advice or that you will achieve the same results. The information contained herein has been obtained from sources believed to be reliable but no representation, expressed or implied, is made as to its accuracy, completeness or correctness. Past performance is not a guarantee of future results. Information contained herein contains forward-looking statements and is subject to significant risks and uncertainties, which will affect the results.
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