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 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 Abercrombie & Fitch (NYSE: ANF - News), STEC (Nasdaq: STEC - News), NVIDIA (Nasdaq: NVDA - News), NetApp (Nasdaq: NTAP - News), Deere (NYSE: DE - News), athenahealth (Nasdaq: ATHN - News), and Nordstrom (NYSE: JWN - News).

Here is just a tiny sample of what BullMarket.com wrote about Abercrombie & Fitch:

"Abercrombie & Fitch has topped EPS estimates six of the last eight quarters, meeting the consensus once and missing once. During that span, the stock has risen four of eight quarters. Seasonally, the stock has risen three of the last four years. ...

"Outside of earnings, A&F is clearly seeing some near-term pressure. Macro conditions in Europe have hurt its international expansion, while a more promotional environment and high costs have caused gross margins to erode considerably. The company also has some dreaded inventory issues.

"That said, we think the company's European and Asian expansions are strong long-term growth drivers, although we'd like the company to focus more on its Hollister brand over its namesake in these markets. ..."

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 Whole Foods (Nasdaq: WFM - 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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