Beating the Street at the earnings game is all about knowing the market's true expectations for a stock.
Knowing the market's expectations -- not just the analyst expectations -- for a stock will often provide the edge necessary to turn earnings season into a profit opportunity.
The more data and trends you can look at to determine not only what investors expect, but also how investors are positioning themselves for the expected move, the better.
Simply put, tracking what people are doing can be more valuable than just tracking what they are saying. In other words, are they putting their money where their mouth is?
Our Earnings Risk Index (ERI) tracks the data and market activity necessary to assess how the market has valued a stock and whether there is a disparity between what the market expects and what the company is likely to deliver. The larger the disparity, the better the trading opportunity.
ERI uses technical, fundamental, and sentiment data to quantify those expectations. And it has provided some big returns already this earnings season.
The following four stocks are among those favored by ERI as bullish earnings plays ahead of their upcoming announcements. Click on each stock to learn more.
Stock #1: Cerner Corp. (NASDAQ: CERN)
Stock #2: Hewlett-Packard (NYSE: HPQ)
Stock #3: Sara Lee (NYSE: SLE)
Stock #4: Tetra Tech Inc. (NASDAQ: TTEK)
Google's plan for netbook PCs moves higher into the clouds
Closing Bell: Stock bulls and dollar death (DDRX,GMCR, PEET, SBUX, EBAY, CI, TECD)
So long peak oil, here comes peak uranium
Reader Comments (Page 1 of 1)
7-25-2009 @ 5:41PM
marshall said...
Any Co. that uses the "your comments" section of a blog to advertise its product is unprofessional and can not be trusted.
7-26-2009 @ 8:29AM
Gary said...
DOW will hit 10,000, economy will improve by years end. Buy buy buy............ Now worry about stagflation, oil prices will increase and that results in everything costing more. Plus at 0% interest, you will see economy heat up big time next year. Get in now !!!