We’re on a bit of a roll of late. Our latest success was The J.M. Smucker Company (NYSE: SJM), which gained about 10% after a solid earnings report Thursday, June 17. We hope you hopped aboard that stock before the pop.

The week ahead has a number of big-name companies reporting. One that we like is Bed Bath & Beyond Inc. (NASDAQ: BBBY), which reports after the close on Wednesday.

Analysts expect a healthy profit increase of 41% from a year ago, although the company has posted gains of more than 56% and 70% in the past two quarters. So the current expectations are far from onerous.

BBBY also has a solid track record when it comes to beating the consensus, having met or beaten every forecast for the past three years. And the stock has performed well after recent reports. In fact, the stock has gained ground in seven of the past eight quarters, averaging pops of more than 8% in just the one day after each report.

BBBY’s chart is a little iffy, but there is support at current levels. Yes, the shares are off 14% from their April high. Yes, the stock has slipped below most of its daily moving averages. But BBBY is now at a level that has defined a bottom for more than a month.

Note in the chart below that the $41.50-$42 region has supplied both support and resistance going back to January. Plus, peak put open interest at the $41 strike should assist with providing a solid foundation.

Sentiment also favors the bulls. The put/call ratio is coming off a peak, indicating a shifting preference from puts to calls. And just nine of 25 analysts rate the stock a “buy.” So we’re seeing lots of room for the skeptical to jump aboard the BBBY bandwagon.

Don’t be left behind. Get on board before BBBY reports earnings with July options using the $41 or $42 strike.

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