It’s here. Finally. Alcoa (AA) reports earnings after the bell today, and earnings season will officially be under way. The funny thing is, as we’ve pointed out many times, the pace of reports this first week is rather slow. Just 20 or so S&P 500 (SPX) companies report this week.
But don’t be fooled. Some major names are on the docket, with tech and financial firms heading the list. On the tech side, Intel (INTC) and Google (GOOG) lead the parade, along with Advanced Micro Devices (AMD) and Linear Technology (LLTC). As for financials, count JPMorgan Chase (JPM) and Bank of America (BAC) as the headliners, with some regional banks joining the lineup.
Other notables include CSX Corp. (CSX), Yum Brands (YUM), PPG Industries (PPG), General Electric (GE) and Mattel (MAT). So there’s plenty to pick from this week.
The table below includes a slice of the action this week, with earnings 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 next week:
Note that we’ve included a number of bigger names in this table, although we’re not getting a good read on many of them from a trading perspective — “3s” and “4s” on Intel, Google and GE don’t get us very excited. But we included them because that’s what most of our readers want to see.
Keep in mind, though, that just because a company is big doesn’t mean it will make a good trade. Rather, it’s typically the smaller and/or less well-known names that make for the best earnings trades, like our pick for this week. Find out what it is here.
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