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, including Apple (Nasdaq: AAPL - News), Starbucks (Nasdaq: SBUX - News), Caterpillar (NYSE: CAT - News), Netflix (Nasdaq: NFLX - News), EMC (NYSE: EMC - News), Coach (NYSE: COH - News), Sandisk (Nasdaq: SNDK - News), and Potash Corp. (NYSE: POT - News).
Here is just a tiny sample of what BullMarket.com wrote about Caterpillar: "Outside of earnings, we think Caterpillar is the world's premier manufacturer of heavy-duty construction, agriculture and mining equipment and we like the potential synergies of the company's recent acquisition of mining concern Bucyrus.
That said, Caterpillar remains a very cyclical company and its success largely depends on the health of its end markets, which can be heavily impacted by the strength of the global economy. The fact that the company was able to post such strong results last quarter despite a healthy slowdown in China is a real positive in our view of both CAT and emerging market economies in general. If Caterpillar is right that the world economy will continue its slow but steady recovery, then we think the stock could reach $150+ in a few years. ..." 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 Q3 were: