Top Tips for Investors as Companies Report Contracting Earnings

With the first half of earnings season behind us, RealMoney Pro contributor Chris Versace breaks down his thoughts on companies' results and his outlook on markets going forward. Versace says earnings are contracting as expected, with the likelihood that they will continue to contract into the second and possibly even the third quarter. He predicts this may mean we don't see quite as much upside in the markets. That means investors should look for companies who are benefiting from a tailwind, an industry shift or disruptive technology -- as well as companies that are growing their revenues, earnings and profits faster than their rivals. Versace reveals what types of companies he's looking at that boast those characteristics.