On April 19th, we learned that our Earnings Surprise model correctly predicted Tesla’s earnings miss for Q1 of 2023. You can take a look at a summary of what happened in our LinkedIn post from Friday, April 20th.
What Others Were Thinking:
Even with Tesla’s significant underperformance in 2022, TSLA was a large holding in multiple portfolios as a major player in the Consumer Discretionary sector to start 2023.
The BAS Advantage:
The Burney Advisor Services (BAS) Earnings Surprise Model indicated a Sell rating for February, March, and April.
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 sell TSLA in their portfolios in February and went short in our 130-30 Long-Short Portfolio in April. On 4/19/2023, Tesla reported the Miss anticipated by the BAS Earnings Surprise Model. TSLA lost over 10% 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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