Which Stocks Look Ready to Surge and Sink with 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 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 still set to report results this week, including Monster Beverage (MNST), Groupon (GRPN), Green Mountain Coffee Roasters (GMCR), Priceline.com (PCLN), Linn Energy (LINE), and Tesla Motors (TSLA).

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

Priceline has beaten analyst EPS estimates each quarter over the past two years. During that span, the stock has risen the next session six of eight quarters. Seasonally, the stock has risen three of the last four years.

Last quarter, Priceline said its Q1 net income grew to $224.3 million, or $4.76 per share, up from $181.8 million, or $3.54 per share, in Q1 2012. Adjusted for one-time costs like stock-option expense the company earned $5.76 per share. Net revenue grew by 25% to $1.3 billion from $1.04 billion.

Wall Street was expecting the company to report adjusted EPS of $5.27 per share on $1.27 billion in revenue.

Adjusted EBITDA grew by 36% to $368 million, which exceeded Priceline's guidance range of $316 million to $346 million.

The overall increase in U.S. gross booking was 36% including Booking.com. Q1 international gross bookings grew by 43% in U.S. dollars and on a local currency basis. ...

Outside of earnings, Priceline is uniquely positioned to capture a big chunk of the international travel market. As we've repeatedly pointed out, Priceline's multiple websites in local languages help it capture keystrokes in those markets and allow. it to benefit from international as well as intra-European and intra-Asian travel through Booking.com and Agoda.com.

The company's growth rate inevitably will slow as it gets larger, but it has made some solid acquisitions in the past to keep the overall pie growing and we would expect the Kayak comparison shopping service to also be accretive long term. If the global economy continues to expand, so will the demand for travel services. ...

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 Facebook's (FB) results.
  • to expect a positive reaction to Michael Kors (KORS) results.
  • to expect a negative reaction to First Solar's (FSLR) results.
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