Earnings season officially begins next week with Alcoa (AA) kicking off the parade on Monday, April 12. That means that this week will be pretty quiet. Call it the “always darkest before the dawn” scenario.
Actually, next week isn’t all that busy either. The first week of the season never is. Things really get humming in two weeks, so we’ll just have to make do for now.
But there are a few names reporting that should draw some interest. That is, if Apple’s (AAPL) introduction of the iPad doesn’t obliterate every other news item. Same goes for Tiger Woods’ return to golf at the Masters.
But for those who can tear themselves away from iPad sales and Tiger’s every word and every stroke, four S&P 500 (SPX) companies are on the earnings docket. And two of them should give a glimpse into how retailers are faring.
The table below includes the four companies’ report dates and what analysts currently expect for profit growth (compared to the same quarter a year ago). We also include a relevant moving average so you can see potential support or resistance (duration in days is in parentheses).
We give an idea of the overall sentiment toward the stock based on our various indicators. Keep in mind that optimistic sentiment represents higher expectations and, thus, can create some vulnerability if those expectations aren’t met. Conversely, pessimism reflects lower expectations that often lead to upside earnings surprises.
And we’re adding the Earnings Risk Index (ERI) score. This proprietary filtering tool ranks stocks from 1 (most bullish) to 5 (most bearish) based on a number of technical, sentiment and earnings-related factors.
ERI is an added benefit for Winning Edge subscribers, as we now send out reports on changes in ERI scores, especially for stocks that became “1s” or “5s”.
Here’s the table for the four stocks to watch next week.
According to our ERI score, your best bet for a bullish option trade would be Family Dollar Stores (FDO), while Bed, Bath & Beyond (BBBY) and Constellation Brands (STZ) should be avoided or shorted with put options.
As for Monsanto (MON), there’s a bit more to that story. Get our take here.
Related Articles:
- Bet Your Bottom Dollar on FDO Earnings
- 5 Option Trades on Hot Takeover Rumors
- 12 Keys to Trading Earnings for Profits
The Secret to Banking Giant Options Gains
If you’re ready to make serious money, we’re talking about 100%-5,300% profits, read our just-released trading guide online now. In it we reveal the money-doubling secret we were banned from sharing, plus two free trades to get you started. Get your FREE copy here!
