lunedì 21 febbraio 2011

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

On Saturday February 19, 2011, 8:47 am EST
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.
With earnings season in swing, BullMarket.com is excited to introduce its Q4 earnings previews, a comprehensive 20- to 30-page report published each Friday during earnings season.
For the past three quarters, BullMarket.com used the data it has collected to correctly predict investor reactions for approximately two-thirds of the stocks it's previewed.
In its latest earnings preview, BullMarket.com looks at several popular stocks, including Salesforce.com (NYSE: CRM - News),Deckers Outdoor (Nasdaq: DECK - News), Hewlett-Packard(NYSE: HPQ - News), Wal-Mart (NYSE: WMT - News), Target(NYSE: TGT - News), Transocean (NYSE: RIG - News), Foster Wheeler (Nasdaq: FWLT - News), Home Depot (NYSE: HD -News), and Priceline.com (Nasdaq: PCLN - News).
Here is just a tiny sample of what BullMarket.com wrote about Foster Wheeler:
"Foster Wheeler has had trouble meeting analyst estimates the past two years, missing the consensus four times, including the past three quarters. During that time, the stock has traded lower five of the past eight quarters, while seasonally the stock has traded lower the past four years....
The bulls generally view Foster Wheeler as an underpriced stock whose businesses are in the early stages of a cyclical recovery. Oil has settled in at levels that while not at the peak speculative prices of 2008 are high enough to encourage energy firms to expand. Similarly, a growing manufacturing sector will lead to increased power consumption and more demand on utilities. The big risks to Foster Wheeler's business would be for oil prices to reverse significantly or the recovery to stall. Given the low interest rates and the Fed's quantitative easing (aka QE2) policies, the latter seems unlikely and the resulting weak dollar will keep commodity prices elevated..."
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 has made recently so far for Q4 were:
  • to be bullish on Whole Foods (Nasdaq: WFMI - News) ahead of earnings.

  • to be bearish on Nuance (Nasdaq: NUAN - News) ahead of earnings.

  • to be bullish on Chipotle (NYSE: CMG - News) ahead of earnings.

  • to be bullish on Nvidia (Nasdaq: NVDA - News) ahead of earnings.

  • to be bullish on Intuit (Nasdaq: INTU - News) ahead of earnings.
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