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Stocks Ready to Pop or Drop with Earnings; But Which Ones? (INTC, AAPL, EBAY, IBM, SBUX, GS, QCOM, CAT, GMCR, GOOG, LLTC, ISRG, JPM, BAC, YUM)

by Geoff Seiler | April 9th  |  Filed in: Stock Analysis

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.

Intel (INTC) is a great example, as the chip giant crushed EPS estimates last quarter, beat on the top line, recorded record gross margins, and offered strong guidance, yet the stock still fell.

Conversely, a seemingly poor earnings report doesn’t necessarily mean a stock will plunge, or even go down for that matter.

With the bulk of earnings season upon us, BullMarket.com has started a new earnings preview feature with its service. The previews look at historical earnings data and EPS trends; examine 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.

It’s easy to predict that Apple (AAPL) will soar past analyst EPS estimates when it reports earnings next week, but what type of stock movement should investors expect based on past history?

Just a few of the correct calls BullMarket.com made last earnings season based the data were that:

  • eBay (EBAY) would beat earnings and that its shares would pop.
  • IBM (IBM) and Starbucks (SBUX) would beat EPS estimates, but that the investor reaction would be muted.
  • even if Goldman Sachs (GS) thumped EPS forecasts, the stock wouldn’t respond.
  • Apple would cruise past estimates and the stock would rise the next session
  • Qualcomm (QCOM) looked poised for a fall
  • guidance could be an issue that sends Caterpillar (CAT) lower
  • investors should lean bullish ahead of Green Mountain’s (GMCR) earnings.
  • In its earnings previews for the week of April 12th-16th, BullMarket.com looks at several popular stocks, including Google (GOOG), Intel, Linear Technology (LLTC), Intuitive Surgical (ISRG), JP Morgan (JPM), Bank of America (BAC), and Yum Brands (YUM).

    Find out which one of these stocks looks like it might be ready to pop, and which one looks like it could tumble.


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