The Earnings Season MVP Could Double From Here

Another trillion? [TradeSmith Daily]( The Earnings Season MVP Could Double From Here By Lucas Downey, Contributing Editor, TradeSmith Daily Fantasy football is not too far off from investing in the stock market. In fantasy, everyone’s gunning for the players with the best individual stats to add to their team. The winning formula would be to choose a running back with the most yards per game… or a QB with a high completion percentage. By using historical data on each player, you’re sifting out the studs from the duds. Stocks should be selected with the same logic. You need to have strict criteria for building your all-star portfolio. And right now, earnings season, is the perfect time to fill out your roster. Today, I’ll show you a company with Patrick Mahomes-like stats that’s set to stay on top of the leaderboards. Not only that, I’ll give you one holy grail signal that just fired… and show you why history says this stock is heading for the Hall of Fame. RECOMMENDED LINK [Wall Street Legends: "Weird Wealth Event" Looms!]( Forget conventional stock picks — two Wall Street legends predict a seismic shift. A "Weird Wealth Event" could disrupt America, leaving most worse off. But YOU can capitalize on this emerging New America. They foresaw Nvidia's 669% surge — now they have another pick. A sub-$5 stock. Don't miss out! [Click HERE for Exclusive Insight!]( META Platforms (META) is the MVP This Earnings Season I don’t use the word holy grail lightly. But some stocks are well deserving of this title. I said it about Microsoft back in September. And I did it again with Mastercard late last year. Both of those stocks sport the most important attributes for multi-year outperformance: Revenue and earnings growth. Using the same yardstick, I’m going to add Meta Platforms (META) to the next company worthy of owning over the long haul. If you haven’t heard by now, the social media giant absolutely destroyed its latest earnings report, sending the stock rocketing 20%: TradingView.com Folks, a 20% one-day jump in a trillion-dollar company must mean something spectacular was announced. Boy was it! For the fourth quarter, META saw sales of $40.11 billion vs. FactSet estimates of $39.12 billion. This jump in business also fell to the bottom line with EPS coming in at $5.33/share vs. estimates of $4.82/share. While that’s great and all, it’s the forward guidance that kicked the stock into the stratosphere. For the first quarter, the revenue guidance from the company now stands at a midpoint of $35.75 billion, monumentally higher than Wall Street expectations of $33.93 billion. If you recall, this is the [only type of headline worth clicking]( because it signals new unexpected growth. And it’s hardly the first time this has happened. META has a rich history of revenue and earnings growth… As a reminder, those are two hallmark traits of holy grail stocks. Here’s Meta’s revenue and net income over the past five years: The key here is the steady growth. The black bars show that revenue has ballooned from $55.8 billion in 2018 to $134.9 billion in 2023. That’s outlier stats akin to drafting a fantasy running back averaging 150 yards a game. Even more impressive is the net income growth in yellow. That’s the amount of money left over after doing business and removing business costs, expenses, interest, and taxes. In 2023 alone, the company saw $39.1 billion in net income, showcasing how fantastically profitable this business is. But these two focal points aren’t what truly blew the doors off the earnings report. It’s the fact that the company initiated its first ever quarterly dividend of 50 cents per share. This signals to Wall Street that META is meta-morphing into an income play. Since we know how profitable META is as a business, it doesn’t take a genius to realize this company has the power to continually raise the payout. That’s the final piece of the holy grail puzzle. Now, not only are growth and tech investors going to pounce on META shares…but a new legion of investors are too… the income chasers. RECOMMENDED LINK [Election Shock on August 19th?]( In less than 258 days, I expect [the biggest presidential election shock since 1968](. Forget about Donald Trump... And forget about Joe Biden... Instead, I believe the unexpected is barreling toward America. And I believe the aftermath will transform this country forever. [Click here now to see the evidence I’ve gathered]( You may ask, what’s so special about initiating a dividend? Turns out, those are some of the best performing stocks. Here’s the proof. Hartford Funds and Ned Davis Research [studied]( different dividend policies for the S&P 500 stocks since 1973. They found that companies that initiate and grow dividends crush non-dividend payers by a wide margin. Dividend initiations are a powerful signal, telling investors they are now going to be compensated for being a shareholder. The revenue growth, net income growth, and new dividend make META a great draft choice for your portfolio. After seeing this earnings report, it would not shock me to see META add another $1 trillion to its market cap over time. By stacking odds like these in your favor, the likelihood of success explodes. That’s why having a data-driven process and using TradeSmith’s software, is mission-critical. Let data pick the players… chances are you’ll stumble across a holy grail draft choice. Regards, Lucas Downey, Contributing Editor, TradeSmith Daily P.S. Just as important as picking “Holy Grail” stocks is steering clear of [the silent killers that hold you back](. It’s happened to all of us. An otherwise glowing portfolio is set back by one or two stinkers that just won’t recover… and have too much good money caught up in them. TradeSmith’s [A.I. powered “Pulse Check” tool — currently on sale starting at just $8]( — helps remedy this problem. In 10 seconds, this tool helps you identify the weakest parts of your stock portfolio. It delivers a detailed and easy-to-read report that shows you precisely which stocks to dump before the damage worsens. Markets are volatile right now. And the weakest stocks in this market will only make any given day’s pain feel that much worse. [Click right here to learn how you can prep your portfolio for greatness with just $8 and a few minutes of your time.]( Get Instant Access Click to read these free reports and automatically sign up for research throughout the week. 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