Which Stocks Look Ready to Pop and Drop with Earnings Next 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 25- to 40-page Earnings Preview report for the week ahead each Friday.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including Hain Celestial (HAIN), Intuit (INTU), Home Depot (HD), Best Buy (BBY), Target (TGT), Toll Brothers (TOL), Hewlett Packard (HPQ), Dollar Tree (DLTR), Gap (GPS), and Autodesk (ADSK).

Here is just a tiny sample of what BullMarket.com wrote about Hain Celestial:

Hain has topped analyst EPS estimates seven of eight quarters over the past two years, meeting estimates once. During that period, the stock has risen the next session five of eight quarters. Seasonally, the stock has risen three times in the last four years.

Last quarter, the company said it earned $40.7 million, or 85 cents per share, for the quarter that ended March 31st. That compares with $24.1 million, or 52 cents per share, a year ago.

Total revenue increased 21 percent to $456.1 million.

Its adjusted net income matched the 72 cents per share analysts had projected, but its revenue was shy of the $480.2 million consensus.

Hain Celestial US reported net sales of $277.6 million. In the United Kingdom, Hain Daniels' net sales were $121.2 million. For the company's Rest of World segment, consisting of the operations of Hain Celestial Canada and Hain Celestial Europe, net sales were $57.3 million.

Hain Celestial said it expects to earn $2.43 to $2.47 per share for the year on revenue around $1.73 billion. Analysts forecast $2.46 per share on revenue of $1.74 billion. ...

Outside of earnings, Hain is the top natural packaged food company in the nation and it has been using smart, bolt-on acquisitions for a number of years to expand an already strong portfolio. We would expect the company to continue to ride the public's embrace of natural and organic foods given its strong brand portfolio. As the Baby Boom generation ages, it has become more health conscious. Meanwhile, many younger buyers were raised eating natural foods and are already believers in natural foods. ...

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 Q2 so far were:

  • to expect a positive reaction to Tesla's (TSLA) results.
  • to expect a positive reaction to Priceline.com's (PCLN) results.
  • to expect a negative reaction to First Solar's (FSLR) 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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