By: Carter Copeland
Back by popular demand: Following several requests, we’re bringing back our quarterly earnings setup analysis, in which we use various quantitative and qualitative measures to rank levels of risk/opportunity/crowdedness across our A&D stocks under coverage. We attempt to capture and compare where sentiment in our space is most bullish and bearish ahead of the estimate scrubbing and short-term positioning period that often precedes earnings season. In a newly revised and more comprehensive format we look at various calendar Q4 trends across several categories including: our own assessment of investor sentiment, put & call option activity, and tax reform, to name a few. In each category, we force rank our coverage companies (higher numbers represent more positive bias) and average the results across categories to come up with a composite “Street Bias” score.