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.
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 still set to report results, including First Solar (FSLR), Sourcefire (FIRE), Visa (V), Yelp (YELP), Hain Celestial (HAIN), OpenTable (OPEN), Blue Nile (NILE), and LinkedIn (LNKD).
Here is just a tiny sample of what BullMarket.com wrote about Yelp:
Yelp has reported earnings twice since going public. Its shares popped on an earning beat last quarter, and slid on a miss in May. ...
Last quarter, Yelp lost less money than expected and its revenue surged by 67%, driven by an increase in advertisers. It raised its revenue forecast for the year.
Yelp reported a net loss of -$2 million, or -3 cents per share, for the second quarter, compared with $1.2 million, or 8 cents per share, a year earlier. Revenue totaled $32.7 million.
Analysts expected a loss of -6 cents per share on $30.5 million in revenue.
Yelp guided for full-year revenue to range from $135 million to $136 million, up from its prior forecast of $128 million to $132 million.
"There are four key operating metrics that we had previously provided as they underpin our strategic and financial success. They are one, the number of reviews contributed to our site; two, the number of unique visitors; three, the number of plain local businesses and four, the number of active local business accounts," CFO Robert Krolik told analysts. ...
Outside of earnings, Yelp is a strong brand that connects consumers with local businesses. It drives 100% of its traffic organically with consumers looking to review local businesses. These businesses then claim their listings to better interact with customers. Yelp then makes money through local advertising, lead generation, and instant deal promotions.
It's a highly scalable business model that should become very profitable over time. It also works great with mobile, and the company's integration into Siri should help drive further mobile traffic to its side.
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:
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, a 47.7% outperformance, 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.)