Q3 is undoubtedly the strongest earnings season for the market: Ally Invest

Earnings may give the stock a big boost starting this week.

Lindsey Bell of Ally Invest found that the third quarter is undoubtedly the strongest earnings season on Wall Street.

“We’re starting to think about year-end into next year, and you’re starting to hear corporate management teams talking about it,” the company’s chief investment analyst told CNBC.Trade Nation“On Monday. That makes investors excited about what’s coming next.”

Bill highlights the uptrend in a special chart. Appears Standard & Poor’s 500Average change by earnings season since 2000.

According to the data, the index rose 2.5% in mid-October to late November, which coincides with third-quarter earnings. Both the second-quarter and fourth-quarter earnings season were down 0.3% on average.

Bell expects the pattern to continue.

“This is the first of four quarters where we’re actually seeing earnings estimates drop a little bit in the reporting period,” said Bell, a CNBC shareholder. “At the same time, we also saw the market move lower in the reporting period. We haven’t seen that for four or five quarters. So the setup looks good for stocks.”

However, she has bloated up her watch list Possible headwinds.

“It’s all going to be a comment about margins and pricing strength,” Bell added. “Performance will be on a one-time basis. It will really favor high-quality companies that can handle higher costs and are also able to pass on pricing power to the consumer.”

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