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.
During earnings season, BullMarket.com publishes a comprehensive 20- to 30-page Earnings Preview report for the week ahead each Friday.
Over the past year, BullMarket.com 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 still set to report earnings, including Baidu (Nasdaq: BIDU - News), NVIDIA (Nasdaq: NVDA - News), NetApp (Nasdaq: NTAP - News), athenahealth (Nasdaq: ATHN - News), and Nordstrom (NYSE: JWN - News).
Here is just a tiny sample of what BullMarket.com wrote about athenahealth:
"athenahealth has surpassed the EPS consensus seven of the past eight quarters. During that span, the stock has risen the next session four of eight quarters. Seasonally, the stock has risen once in the last four years. ...
"Outside of earnings, while athenahealth management likes to assert that its software-as-a-service model is superior to the "top-down" approaches of larger IT providers, given the complexity of healthcare we aren't convinced that it is that cut and dried. A company like Cerner (Nasdaq: CERN - News) has an established reputation with hospitals and can use its relationships with them to branch out into the physician office. There also are some benefits to inter-connectivity for a doctor affiliated with a particular institution. Which approach proves to be a superior model remains to be seen, but the point is that it is a competitive marketplace.
"We like the fact athenahealth is moving into new segments of the healthcare market, but it is still largely dependent on its payment processing product. Collector does provide a nice recurring revenue stream and the company seldom loses customers to a competing product. Its new products, however, remain largely unproven, and the fact they are going to weigh on margins certainly spooked investors at the end of last year. ..."
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 for Q4 so far were:
to be bearish on Google (Nasdaq: GOOG - News) ahead of earnings.
to be bullish on Apple (Nasdaq: AAPL - News) ahead of earnings.
to be bearish on Amazon.com (Nasdaq: AMZN - News) ahead of earnings.
to be bullish on Green Mountain (Nasdaq: GMCR - News) ahead of earnings.
to be bullish on Whole Foods (Nasdaq: WFM - News) ahead of earnings.
A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks is up 33.3% from 2008-2011 versus a -14.4% return for the S&P, topping the benchmark each year since the start of the Great Recession. 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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