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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 Limited Brands (NYSE: LTD - News), Wal-Mart (NYSE: WMT - News), Dell (Nasdaq: DELL - News), Home Depot (NYSE: HD - News), NetApp (Nasdaq: NTAP - News), Dollar Tree (Nasdaq: DLTR - News), Target (NYSE: TGT - News), and Salesforce.com (NYSE: CRM - News).

Here is just a tiny sample of what BullMarket.com wrote about Wal-Mart: "Wal-Mart has surpassed analyst EPS estimates each quarter over the last two year. During that stretch, the stock has risen the next session five of eight quarters. Seasonally, the stock has risen each of the last four years. ...

"Outside of earnings, Wal-Mart continues to face challenges at home from the economy, which is hurting its core customers, and the impact of past merchandising mistakes. Last quarter, management said it made further progress on restocking shelves with merchandise it had eliminated a couple years ago in an ill-considered effort to streamline its supply chain, but the survey results from an August WSJ article that came out the time of its Q2 earnings suggest Wal-Mart still has a lot of work to do to win back customers. Internationally, the company has seen solid success, and the company could benefit from un- or under-banked customers in the U.S. Trading under 12x next year's estimates, Wal-Mart's stock isn't expensive..." 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 so far for Q3 were:

  • to be bullish on Cisco (Nasdaq: CSCO - News) ahead of earnings.
  • to be bullish on Panera Bread (Nasdaq: PNRA - News) ahead of earnings.
  • to be bearish on STEC (Nasdaq: STEC - News) ahead of earnings.
  • to expect a bearish investor reaction to Netflix's (Nasdaq: NFLX - News) earnings.
  • to be bullish on Priceline.com (Nasdaq: PCLN - 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 was up +40% in '09 and up over +20% in 2010. 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.)