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Which Stocks Look Ready to Jump After Earnings Next 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 approximately two-third of the stocks it's previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including Coach (COH), Herbalife (HLF), True Religion (TRLG), MasterCard (MA), Enterprise Products Partners (EPD), Skullcandy (SKUL), OpenTable (OPEN), Blue Nile (NILE), and LinkedIn (LNKD).

Here is just a tiny sample of what BullMarket.com wrote about Coach: Coach has surpassed analyst EPS estimates each quarter over the past two years. Over that stretch, the stock has risen three of eight quarters. Seasonally, the stock has fallen each of the last four years.

Last quarter,the company Coach reported net income of $225 million, or 77 cents per share, compared with $186 million, or 62 cents a share, a year earlier. The results beat Wall Street forecasts by 2 cents per share.

Revenue in the third quarter ended on March 31 rose 16.6% to $1.11 billion, just above the $1.10 billion Wall Street analysts were expecting.

Sales at its stores open at least a year in North America, still the company's largest market, rose by 6.7%, but that was down from 8.8% comp growth in the previous quarter.

Some of that slowdown was due to a new pricing strategy at its factory stores, where it sells products that are often 50% less than merchandise at its full service stores. It stopped using coupons and other one-time promotions to bring in customers. ...

Outside of earnings, we think Coach is one of the top names in "affordable" high-end retail. The company has done a great job expanding beyond its core U.S. and Japan markets into China, other Asian countries, and select European markets through joint ventures. Its new men's business,meanwhile, has shown some early promising results, and could be a strong growth driver, especially in China where men make up a much larger percentage of the luxury accessories market than in the U.S.

Coach has a solid balance sheet with around $906 million in net cash, or about $3.09 per share, and a shareholder friendly management team that continues to buy back shares and increase the dividend. ...
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 recent correct calls BullMarket.com made for Q2 were:

  • to be bullish on Qualcomm (QCOM) ahead of earnings.
  • to be bullish on eBay (EBAY) ahead of earnings.
  • to be bearish on Facebook (FB) 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 S&P, a 47.7% outperformance, 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.)