Another earnings season upon us, this week kicks off with more than 100 companies announcing earnings. Here are a few of the results to be announced this week that I’ll be looking at carefully:
This is from a piece I wrote for GuruFocus, outlining 7 stocks that I think could be volatile after their earnings announcements:
“Earning season can always be expected to bring a rise in volatility. But at a time when stock markets seem to be pricing in perfection, a poor earnings announcement or guidance can stop a stock’s momentum in its tracks. Whether you look at the stock market’s high CAPE ratio, the time since we have seen a correction, or extreme bullish sentiment, it is easy to see that investors have high expectations.
This creates a potential for large moves in a stock’s price after an earnings announcement. Results below expectations can give a harsh reality check for investors who had been expecting greatness. Meanwhile, a blowout earnings announcement can lead to capitulation by bears and send a stock soaring.
As we get into a busy week of earnings announcements, here’s a look at some companies that report earnings this week that investors expect to be volatile after the earnings announcement.”
The article highlights 7 companies; Netflix, Capital One, United Continental, Caterpillar, Freeport-McMoRan, Intel, and General Electric, and information that I think will be most valuable for investors.
For example, with Capital One. Credit performance has been declining recently. Will the trend continue?
The Entire article can be read on GuruFocus, here: https://www.gurufocus.com/news/627029
