"No man can become rich without himself enriching others"
Andrew Carnegie



Sunday, August 14, 2011

Which Stocks Look Ready to Pop and Drop with Earnings Next Week?

From Indie Research
,



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.

Each Friday during earnings season, BullMarket.com publishes a comprehensive 20- to 30-page Earnings Preview report for the week ahead.

Over the past year, BullMarket.com has used the data it has collected to correctly predict investor reactions for approximately two-third of the stocks it's previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including Dell (Nasdaq: DELL - News),Salesforce.com (NYSE: CRM - News), Home Depot (NYSE: HDNews), Wal-Mart (NYSE: WMT - News), Deere (NYSE: DE -News), Target (NYSE: TGT - News), Hewlett-Packard (NYSE:HPQ - News), and NetApp (Nasdaq: NTAP - News).

Here is just a tiny sample of what BullMarket.com wrote about Target: "Target has posted mixed results over the past two years, beating EPS estimates five times, meeting twice, and missing once. During that time the stock has risen four of eight quarters. Seasonally, the stock has risen three of the past four years. ...

"Outside of earnings, Target has always been more of a middle cycle retailer, and if the economy can progress to that next stage of recovery, then Target will be a very good stock to own. The recent market turmoil and U.S. debt downgrade certainly have put some doubts in investors' minds about the economic recovery, but June and July were two of the best months Target had produced in quite a long time, with a number of positive signs beyond just the headline same-store numbers (such as strong sales across all geographies and apparel sales trending at pre-recession levels) . ..." The full BullMarket.com earnings analysis includes a look at historical earnings data and EPS trends for the companies above and more; examines 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.

Just a few of the correct calls BullMarket.com made for Q2 so were:
  • to be bullish on Green Mountain (Nasdaq: GMCR - News) ahead of earnings.


  • to be bullish on Cree (Nasdaq: CREE - News) ahead of earnings.


  • to be bullish on Baidu.com (Nasdaq: BIDU - News) ahead of earnings.
  • to expect a negative investor reaction to Akamai's (Nasdaq: AKAM - News) earnings.


  • to expect a negative reaction to STEC's (Nasdaq: STEC - News) earnings.


  • A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks was up +40% in '09 and up over +20% in 2010. Subscribers receive actionable market commentary, access to 40+ stock ideas on the Recommended List, and real-time trade alerts. Plus, sign up for a free trial today to view Bull Market's in-depth Special Reports - including its annual High Yield and MLP reports - and its timely Earnings Previews, which are published every Friday during the heart of earnings season. Get a Risk-Free Trial to Bull Market Today! (Please note returns are unaudited).

    No comments:

    Post a Comment