Stocks Ready to Pop or Drop with Earnings; But Which Ones?
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1/22/10BullMarket.com
Stocks tend to be most volatile around earnings season, when a good or bad report can make or break it. However, a good or even great earnings report doesn’t necessarily translate into a huge pop for a stock.
Intel (Nasdaq: INTC – News) is a great example, as the chip giant crushed EPS estimates, beat on the top line, recorded record gross margins, and offered strong guidance, yet the stock still fell.
Conversely, a seemingly poor earnings report doesn’t necessarily mean a stock will plunge, or even go down for that matter.
With the bulk of earnings season upon on, BullMarket.com has started a new earnings preview feature with its service. The previews look at historical earnings data and EPS trends; examine past investor reactions to earnings in various contexts; gives options activity analysis; reviews previous-quarter earnings; and gives an opinion on both what earnings will look like and how investors will react based on the aforementioned data points.
It’s easy to predict that Apple (Nasdaq: AAPL – News) will soar past analyst EPS estimates when it reports next week, but what type of stock movement should investors expect based on past history?
Just a few of the correct calls BullMarket.com made last week based the data were that:
eBay (Nasdaq: EBAY – News) would beat earnings and that its shares would pop.
IBM (NYSE: IBM – News) and Starbucks (Nasdaq: SBUX – News) would beat EPS estimates, but that the investor reaction would be muted.
even if Goldman Sachs (NYSE: GS – News) thumped EPS forecasts, the stock wouldn’t respond.
Intuitive Surgical (Nasdaq: ISRG – News) was a good candidate to initiate a long straddle position on
In its earnings previews for the week of January 25th-29th, BullMarket.com looks at eight popular stocks, including Microsoft (Nasdaq: MSFT – News), Apple, Caterpillar (NYSE: CAT – News), Amazon (Nasdaq: AMZN – News), SunPower (Nasdaq: SPWRA – News), Green Mountain Coffee (Nasdaq: GMCR – News), Potash Corp (NYSE: POT – News), and Qualcomm (Nasdaq: QCOM – News).
Find out which one of these stocks looks like it might be ready to pop, and which one looks like it could tumble.
A daily investment service that identifies winning long-term growth, value, and income stocks, BullMarket.com’s Recommended List of stocks outperformed the S&P 500 by nearly 15% in 2008 and was up 40% in 2009. BullMarket.com has recently published a earnings previews that is available for free to all subscribers. Sign up for a free trial today and receive actionable market commentary, real-time trade alerts, access to 40+ high-quality recommended stocks, and the high-yield special report.
