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

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 Cree (Nasdaq: CREE - News), SodaStream International (Nasdaq: SODA - News), Enterprise Products Partners (NYSE: EPD - News), Nuance (Nasdaq: NUAN - News), Ralph Lauren (NYSE: RL - News), Cisco (Nasdaq: CSCO - News), Rovi (Nasdaq: ROVI - News), and NVIDIA (Nasdaq: NVDA - News).

Here is just a tiny sample of what BullMarket.com wrote about Enterprise: "Enterprise has topped EPS estimates six of the past eight years, although we would remind investors that metrics such as distributable cash flow (DCF) and coverage ratios are much more important. During that stretch, the stock has risen five of the past eight quarters. Seasonally, the stock has fallen three of the past four years. ...

"Outside of earnings, we think if an investor could invest in only one MLP for the next 5-10 years, that Enterprise would be the one to choose. Enterprise has a robust coverage ratio, largely fee-based businesses, a strong history of growth, a cost of capital advantage after buying out its GP (general partner), a strong management team, and a solid runway for growth. Rising interest rates and any change in the MLP tax structure would be risks. Enterprise has been a member of our Recommended List since 2006, generating an over 150% total return. ..." 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 Baidu.com (Nasdaq: BIDU - News) ahead of earnings.
  • to expect a negative investor reaction to NetFlix's (Nasdaq: NFLX - News) 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.)

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