Which Stocks Look Ready to Pop and Drop with Earnings This Week?

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 20- to 30-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 nearly two-third of the stocks it’s previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including Salesforce.com (NYSE: CRM – News), Dell (Nasdaq: DELL – News), Intuit (Nasdaq: INTU – News), Monster Beverage (Nasdaq: MNST – News), Hewlett-Packard (NYSE: HPQ – News), First Solar (Nasdaq: FSLR – News), Skullcandy (Nasdaq: SKUL – News), Deckers Outdoor (Nasdaq: DECK – News), Target (NYSE: TGT – News) and Wal-Mart (NYSE: WMT – News).

Here is just a tiny sample of what BullMarket.com wrote about Target:

“Target has surpassed the earnings consensus five of the last eight quarters, missing once and meeting estimates twice. During that time, the stock has risen the next session four of eight quarters. Seasonally, the stock has risen two of the last four years. …

“Outside of earnings, an improved job market is really the key for Target’s stock to get moving, given that it’s typically a mid-cycle stock that often benefits from the trade-up effect when the employment picture improves.

“All in all, we continue to think Target looks attractive moving forward, as we like its move into Canada, initiatives like putting boutique stores within its stores and limited time designer collaborations (including Jason Wu in February), its move to adjust its pricing strategy with its vendors, as well as an attractive valuation (about 12x current year estimates, that are constrained by the added costs to

move into Canada).”

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 has made for Q4 so far were:

to be bearish on Google (Nasdaq: GOOG – News) ahead of earnings.

to be bullish on Apple (Nasdaq: AAPL – News) ahead of earnings.

to be bearish on Amazon.com (Nasdaq: AMZN – News) ahead of earnings.

to be bullish on Green Mountain (Nasdaq: GMCR – News) ahead of earnings.

to be bullish on NetApp (Nasdaq: NTAP – News) ahead of earnings.

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 SP, 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.)

Article source: http://finance.yahoo.com/news/stocks-look-ready-pop-drop-132207332.html