The Top 5 Stocks Reporting Earnings Next Week

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Despite the rough market on Wednesday there was good news out there. For example, Sprint Nextel ( S ) reported revenue growth for the first time in three years and with 198 of the 500 companies in the S&P 500 index reporting earnings well above analysts' estimates, and those earnings being nearly 77% higher than a year ago, Q3 will mark the S&P 500's seventh straight positive earnings season. So, we're focusing on the good news.

Taking all these positives into account, we're looking for strong companies likely to make a rally in the short term. All our stocks on today's list will be making their earnings announcements next week, and they all have a very positive ROE and we've also made sure that they've shown growth over the last quarter. We have listed the criteria we used to develop the search for these stocks below. You can also run the search yourself at finviz.com . Try to modify the criteria yourself to meet your specific investing style.

Earnings Date
We're specifically looking for stocks that will be releasing their earnings report next week, so we've limited our search to just these stocks.

Optionable and Shortable
We use this criteria to filter out stocks that have liquidity problems and may be expensive to trade. It is usually safe to assume that if the stock has listed options and is easy enough to borrow that it can be shorted that there will be enough liquidity to accommodate most tradings strategies.

ROE
Looking for a stock with a return on equity (ROE) metric above 30% is setting the bar very high but it summarizes a lot of key fundamental data into one easy to use score. If we were to deconstruct ROE you would see that it includes most of the important information from the income statement and balance sheet.

Performance
Unless you are a true contrarian, most traders would agree that "the trend is your friend". Therefore - even in adverse market conditions - looking for a stock showing growth over the last quarter is probably a good idea. The better the trend the better the momentum for a potential trade.

DirectTV ( DTV )
ROE: 47.42% Performance (Quarter): 14.97% Earnings Date: Nov 4



Teradata Corporation ( TDC )
ROE: 30.90% Performance (Quarter): 17.94% Earnings Date: Nov 4



TRW Automotive Holdings ( TRW )
ROE: 46.64% Performance (Quarter): 35.70% Earnings Date: Nov 3



Cedar Fair LP ( FUN )
ROE: 47.75% Performance (Quarter): 5.67% Earnings Date: Nov 2



Herbalife ( HLF )
ROE: 69.67% Performance (Quarter): 25.07% Earnings Date: Nov 1



Image Courtesy of Amagill

 


The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ OMX Group, Inc.



This article appears in: Investing , Stocks

Referenced Stocks: DTV , FUN , HLF , S , TDC , TRW

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