If you're looking for stocks that are setting up in a base ahead of their next earnings report, here's one that fits the bill: IBD 50 member Nutrisystem ( NTRI ). It's expected to release its latest numbers around Oct. 25 and is trading about 12% below a 68.05 entry.
The entry is based on a third-stage cup without handle , which means it's more prone to failure than a first- or second-stage formation.
[ibd-display-video id=2102289 width=50 float=left autostart=true] Keep in mind that jumping into a stock right as it gets ready to report means you likely won't have enough time to build a profit cushion before the release. That leaves you exposed to a sudden and perhaps sharp drop if the company doesn't deliver the type of numbers analysts were looking for. You can minimize your risk by waiting to see how the company reports and how the market reacts.
The company showed 48% earnings growth last quarter. Sales increased 30%.
Consensus analyst estimates call for earnings growth of 53% for the quarter, and 49% growth for the full year. Annual earnings-per-share estimates were recently revised higher.
The company has a 96 Composite Rating and holds the No. 1 rank among its peers in the Cosmetics/Personal Care industry group. Medifast ( MED ) and Estee Lauder ( EL ) are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.