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

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 nearly two-third of the stocks it's previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including Salesforce.com (NYSE: CRM - News), Dell (Nasdaq: DELL - News), Intuit (Nasdaq: INTU - News), Monster Beverage (Nasdaq: MNST - News), Hewlett-Packard (NYSE: HPQ - News), First Solar (Nasdaq: FSLR - News), Skullcandy (Nasdaq: SKUL - News), Deckers Outdoor (Nasdaq: DECK - News), Target (NYSE: TGT - News) and Wal-Mart (NYSE: WMT - News).

Here is just a tiny sample of what BullMarket.com wrote about Wal-Mart: "Wal-Mart has topped analyst EPS estimates six of the last eight quarters, missing last quarter and meeting estimates the other time. During that stretch, the stock has risen the next session four times. Seasonally, the stock has risen two of the last four years. ...

"Outside of earnings, Wal-Mart continues to face challenges at home from the economy, which has hurt its core customers more than other retailers. It also continues to recover from past merchandising mistakes that cut popular items from its assortment. Last quarter, the retailer sacrificed margins to help drive sales. The willingness of the company to continue to eat food and fuel cost inflation to drive traffic could create a bit of an overhang.

"Internationally, the company has seen solid success, and the company could benefit from un- or under-banked customers in the U.S. The stock remains inexpensive trading neat 12.5x next year's estimates ..." 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 NetApp (Nasdaq: NTAP - 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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