Each earnings season I get awfully excited. As a growth
simple trading strategies
place a huge priority on sales, earnings and other quarterly
numbers. That means earnings season is "where's the beef" time for
stocks and the best opportunity to identify the best investments in
the stock market for your retirement money. In fact, today I'm
going to give you 10 stocks to buy that I think should be closely
watched this earnings season for breakout potential!
Let's get right to all the details for these stocks to buy:
): You may not believe this retail stock would perform well, but I
like Williams-Sonoma as a stock to buy this earnings season. WSM
has been an A- or B-rated stock in my
stock rating tool for the last 10 months and has reported a strong
earnings surprise in each of the last four quarters. The company
does have a
of around 25, but that's on par with other competitors. While
retail stocks have not appeared to be the best bet in the last
year, WSM is a strong company that continues to beat estimates and
post incredible quarter-to-quarter growth. In the last 90 days,
analysts have revised earnings 100% higher, but I have a feeling
the company could do even better.
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- 7 rules to buying great low-priced investments.
): TRW makes components for approximately 40 automakers, including
Volkswagen, General Motors, Ford and Chrysler. The company operates
nearly 200 facilities in more than two dozen countries worldwide
and that's why approximately 75% of its sales come from outside the
U.S. This is another stock that has been a strong buy for the last
year and has had an incredible earnings record. Take last quarter,
for instance, when the company posed a 126% earnings surprise! The
stock was recently caught up in some of the market volatility so at
its current price it is a great bargain.
- When is it time to sell a dividend stock?
): Impax makes specialty generic pharmaceuticals, specifically
focusing on controlled-release versions of branded drugs and niche
treatments that require difficult-to-obtain raw materials or
specialized expertise. A chart of IPXL in the last 12 months shows
an unstoppable uptrend accentuated by increasing earnings. Last
quarter the company reported a 303% earnings surprise and analysts
have upped earnings estimates from $0.30 to $0.56 for the current
quarter. I bet that the company will beat these estimates and will
continue to post huge earnings in the quarters ahead.
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): Cimerex may not be a familiar name to you, but all you need to
know is that this company is a $6 billion oil and gas exploration
corporation that operates in the central United States. The company
has had more of a conservative earnings surprise history, but
analyst estimates for the second quarter have increased 20% in the
last 90 days. With troubles in offshore drilling, land based
operations are getting more attention, which is good news for
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): Spreadtrum designs and markets communications chips for the
red-hot wireless telecom market. SPRD semiconductors, which are
compatible with a range of international wireless standards, are
sold to manufacturers of cell phones, which then incorporate them
into their products. SPRD had a 225% earnings surprise last
quarter, but by the time the company reported, the stock was
already up nearly 40% in anticipation. The stock is starting its
next run ahead of earnings, so you'll want to make this trade now
and sell before earnings come out.
): Whirlpool is a name you probably never guessed would be a stock
to buy for earnings, especially since big-ticket consumer items
aren't exactly in high demand. But this company jumped from under
$90 a share to over $115 on excitement over earnings. Analysts are
predicting another great quarter and I would buy this one for the
run up ahead of earnings and sell at or just before the report
): Wintrust is actually a strange play for earnings season.
However, my advice is a short-term swing trade for this stock that
is not solely based on fundamentals. This company likes to run up
as much as 100% ahead of earnings and like clockwork, sells off
after the report. Earnings look to be strong this quarter,
estimates are up and now is the right time to buy. Do not be left
holding the stock after the earnings date, however, because you
could quickly find your position retracing all of its gains.
): Power-One is a stock that loves to jump as much as +30% on the
day of and shortly after earnings. This company is in the renewable
energy industry, which often experiences sales in waves and,
therefore, is tough to predict which quarters will have high
revenue. Just a few days of deferred payment can make or break
companies like this and that's why traders wait for the numbers. If
you can trade in and out quickly of this position, I suggest you
take a small stake.
): Select Comfort is the company behind the Sleep Number brand of
beds. While their customers are looking for a calm, peaceful nights
rest, traders like to bounce the stock higher each earnings season.
Last quarter the stock went from $8.65 to a high of $11.78 in the
few trading days surrounding earnings. This 36% increase in the
stock came from a 55% surprise and I think SCSS can do it again
): Volterra is a fantastic small-cap stock that makes low-voltage
power supply chips. Estimates are up 37%, the company has had two
consecutive earnings surprises and in the past it has jumped on
earnings. Last quarter it increased $1 per share after earnings and
the quarter before that it gained $3.31, and that was just in one
As of this writing, Louis Navellier owned a position in IPXL,
SPRD and VLTR.