Investor Stephanie Link on how to trade the 'silly' earnings season: Two stocks to buy on the dip

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Follow Hightower Advisors Chief Investment Strategist Stephanie Link as she breaks down how she invests around earnings season.

Hightower Advisors' chief investment strategist Stephanie Link advised investors do their homework this earnings season to find buying opportunities based on fundamentals — not based on the market reaction. "I often say that earnings season is silly season," Link said. And that's because the company will report earnings and then immediately you get this reaction. And it has nothing to do with the fundamentals or what the company has to say or what happens to guidance.

The bank stock is down 7% this year. At the same time, Johnson & Johnson shares dropped about 2.5% despite topping earnings and revenue expectations in the first quarter. Shares are down 8% this year. According to Link, both stocks represent buying opportunities given their strong results – even if the investor reaction during Tuesday trading has proved lackluster. "You have to do your homework when companies report earnings," Link said.

 

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Stephanie my sh*r don’t st*nk l*nk! Buys most everything before it went up and sold it before it went down…right? Loves to tell everyone how much she made…right? I love it went KB gets in her grill and purposely yanks her chain…right?

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