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 this week, including Akamai Technologies (Nasdaq: AKAM - News), Whole Foods (Nasdaq: WFM - News), Groupon (Nasdaq: GRPN - News), Cisco (Nasdaq: CSCO - News), Visa (NYSE:V - News), Nuance (Nasdaq: NUAN - News), and LinkedIn (Nasdaq: LNKD - News).
Here is just a tiny sample of what BullMarket.com wrote about Cisco:
"Cisco has topped the EPS consensus each quarter over the last two years. During that span, the stock has risen the next session only three of eight quarters. Seasonally, the stock has risen three of the last four years. ...
"Outside of earnings, after stumbling in calendar 2011 Cisco recognized it was bloated and poorly focused, a condition that had allowed more nimble competitors to chip away at its market share. Newly streamlined and better organized, it has become much more aggressive in dealing with competitive threats. Management has also gotten more realistic about its growth goals, resetting the bar lower in terms of its long-term expectations. Nevertheless, Cisco remains a play on the trends of cloud computing, data center consolidation, and server virtualization. Services segment growth shows it is succeeding in creating a high-margin, software-oriented revenue stream that complements its market- leading switching and router business.
"As for headwinds, Cisco does face exposure to the public sector and to Europe's tumult, but the stock remains cheap, trading at only 8x the fiscal 2012 estimate of $1.77 (excluding its more than $5 per share in cash) and about 7.5x the fiscal year 2013 estimates of $1.93 that ends in July 2013. ..."
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:
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