Which Stocks Look Ready to Pop or Drop After Earnings This 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.

During earnings season, BullMarket.com publishes a comprehensive 20- to 30-page Earnings Preview report for the week ahead each Friday.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including Zillow (Nasdaq:Z), Hain Celestial (HAIN), Monster Beverage (MNST), Telsa (TSLA), Michael Kors (KORS), Whole Foods (WFM), SolarCity (SCTY), Qualcomm (QCOM), Groupon (GRPN), and Priceline.com (PCLN).

Here is just a tiny sample of what BullMarket.com wrote about Monster Beverage:

Monster Beverage has topped analyst EPS estimates one of the past eight quarters, missing them seven times. During that period, the stock has risen the next session five of eight quarters. Seasonally, the stock has risen two of the past four years. ...

Last quarter, the beverage maker reported a second-quarter profit of $106.8 million, or 62 cents per share, compared with $109.8 million, or 59 cents per share, a year earlier. Share repurchases in the last year reduced the outstanding share count and resulted in the per-share increase in net income. Wall Street was looking for the company to report 64 cents per share in net income.

Net sales grew to $630.9 million from $592.6 million a year ago and Monster's gross profit improved by 150 basis points to 53.3% of net sales. Operating expenses increased to $156.8 million from $137.2 million in the same quarter last year.

Gross sales grew by 6.6% to $723.9 million, but net income declined on costs associated by its legal woes. The company was also hurt by a stronger U.S. dollar. ...

Outside of earnings, Monster is one of the leaders in the energy drink category, having the number 2 brand in terms of sales with its namesake drink. However, Monster has seen some of the best momentum in the category, and dollar market share between it and leader Red Bull has continued to narrow. The energy drink category continues to show solid overall growth, despite the market starting to mature, and Monster is continuing to expand geographically into new countries.

Meanwhile, the company has proven to be a solid innovator, including with its Rehab drink (non-carbonated rehydration). Its Peace Tea brand has also been showing strong growth as well. ...

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 so far were:

  • to expect a positive reaction to Google's (GOOG) results.
  • to expect a negative reaction to LinkedIn's (LNKD) results.
  • to expect a positive reaction to 3D Systems (DDD) results.
  • A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks is up 104.9% from 2009-2012 versus a 57.9% return for the S&P, a 47.0% outperformance, 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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