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

the BullMarket.com Staff

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 Apple (Nasdaq: AAPL - News), Starbucks (Nasdaq: SBUX - News), Caterpillar (NYSE: CAT - News), Netflix (Nasdaq: NFLX - News), EMC (NYSE: EMC - News), Coach (NYSE: COH - News), Sandisk (Nasdaq: SNDK - News), and Potash Corp. (NYSE: POT - News).

Here is just a tiny sample of what BullMarket.com wrote about Caterpillar: "Outside of earnings, we think Caterpillar is the world's premier manufacturer of heavy-duty construction, agriculture and mining equipment and we like the potential synergies of the company's recent acquisition of mining concern Bucyrus.

That said, Caterpillar remains a very cyclical company and its success largely depends on the health of its end markets, which can be heavily impacted by the strength of the global economy. The fact that the company was able to post such strong results last quarter despite a healthy slowdown in China is a real positive in our view of both CAT and emerging market economies in general. If Caterpillar is right that the world economy will continue its slow but steady recovery, then we think the stock could reach $150+ in a few years. ..." 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 were:

  • to be bearish on STEC (Nasdaq: STEC - News) ahead of earnings.
  • to be bullish on Panera Bread (Nasdaq: PNRA - News) ahead of earnings.
  • to be bullish on Cisco (Nasdaq: CSCO - News) ahead of earnings.
  • to expect a bearish investor reaction to Netflix's (Nasdaq: NFLX - News) earnings.
  • to be bullish on Akamai (Nasdaq: AKAM - 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.)