Earnings season is a great time of year. Every quarter, companies report on how they're doing—and it gives shares the biggest opportunity to move outside of a big market rally or decline.
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 | | Buy Industry Leaders During Times of Uncertainty |  | Markets love certainty. The more certain things are, the easier it can be to predict future prices.
Of course, the real world is fraught with uncertainty. That's why stocks have been gyrating on news headlines about trade wars for the past few years. Or why the market can make big swings any time someone at the Federal Reserve talks about changes in interest rates.
This uncertainty will usually weigh on the price of a company stock. That may be painful if you own shares, but it may mean a buying opportunity whether you already own shares or not. While uncertainty also means an increase in fear, which spurns many potential investors away, the lower prices that result tend to be rewarding over time.
With earnings season underway, some companies are doing great, others… not so much. The ones that aren't doing the best are the ones giving investors the most uncertainty right now. Those companies are often the most attractive buying opportunities going forward, however.
When things look good for a company, traders price in a rosy future even though things may have already peaked. Today's fast growing company may seem to provide a lot of certainty—until the growth slows a quarter or two down the line.
It's when things look bad for a company that you get the best value. That's one of the great advantages of investing during earnings season in companies that seem to be struggling now.
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