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Which Stocks Look Ready to Jump After 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 Alcoa (AA), Yum Brands (YUM), Costco (COST), Google (GOOG), Annie's (BNNY), Groupon (GRPN), Wells Fargo (WFC), and JPMorgan Chase (JPM).

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

Yum has topped analyst EPS estimates five of the past eight quarters, meeting estimates once and missing twice. During that span, the stock has risen the next session six of eight quarters. Seasonally, the stock has risen two of the last four years.

Last quarter, Yum reported solid Q1 results, posting a profit of $458 million, or 96 cents per share, up from $264 million, or 54 cents per share, last year. Adjusted EPS rose to 76 cents from 63 cents.

Revenue climbed 13% to $2.74 billion.

Analysts had expected a profit of 73 cents on revenue of $2.71 billion.

In the U.S. same-store sales grew 5%, led by a 6% increase at Taco Bell. Pizza Hut saw a 5% increase, while KFC lagged at 2%. Restaurant margin increased 370 basis points to 14.4%. ...

Outside of earnings, Yum has been making some nice progress in the U.S. with Taco Bell, as its Doritos Locos tacos and new upscale Cantina Bell menu have been becoming increasingly popular, breathing life back into the chain. Emerging markets outside of China have also been doing well. India also looks like it could be a big growth opportunity, and the KFC and Pizza Hut brands look to be a perfect fit for a country where not a lot of beef is eaten.

That said, Yum is still largely a China story. ...

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 recent correct calls BullMarket.com made for Q2 were:

  • to be bullish on Qualcomm (QCOM) ahead of earnings.
  • to be bullish on eBay (EBAY) ahead of earnings.
  • to be bearish on Facebook (FB) ahead of earnings.
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