This Day On The Street
Continue to site right-arrow
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

5 Dow Stocks Likely to Rise After Earnings

Stocks in this article: JPM IBM KFT UTX T

BOSTON ( TheStreet) -- Some Dow stocks, such as JPMorgan Chase (JPM) and IBM (IBM), tend to perform better than others after reporting second-quarter earnings results.

That's not the case with Disney (DIS) and Microsoft (MSFT).

Alcoa (AA) unofficially kicks off the earnings reporting season July 11 after the stock market's closing bell. The aluminum producer's stock doesn't fare well after reporting second-quarter numbers, falling an average of 0.7% the following day, according to data collected over the past 10 years.


Disney, Microsoft and Exxon Mobil (XOM) typically fall an average of 2% in the trading session after the companies report financial results for the second quarter.

Earnings season can involve risks because of additional volatility for many of the 30 Dow components, especially this year, when the Dow has seesawed. The benchmark is up almost 9% this year. Last summer, shares of Bank of America (BAC) and Cisco Systems (CSCO) each plunged 10% during the trading day after reporting their respective results, while Pfizer (PFE) shares rallied nearly 6%.

Nothing is a sure bet, but history can be a guide. The following five Dow stocks have notched, on average, the biggest gains in the trading day immediately after posting quarterly numbers in July and August over the past 10 years. TheStreet has ranked the top five winners based on that percentage rise.

5. United Technologies (UTX)

Company Profile: Industrial giant United Technologies is the maker of Pratt & Whitney jet engines and Otis elevators.

Expected Reporting Date: July 18 (before market open)

Historical Price Performance: Shares of United Technologies have increased an average of 1.1% in the trading session immediately after the company posts second-quarter results. In six of the past 10 years, shares have climbed during that trading session. Among the biggest increases, United Technologies shares rose 5.9% on July 17, 2008, after the company beat earnings expectations.

Analyst Consensus: Analysts predict that United Technologies will report a second-quarter profit of $1.41 a share and revenue of $14.7 billion, according to data compiled by Thomson Reuters. That compares to year-earlier earnings of $1.20 a share and revenue of $13.9 billion.

United Technologies is a favorite among analysts headed into second-quarter earnings, garnering 20 "buy" ratings and five "hold" ratings, according to data compiled by Bloomberg. No analyst following the company recommends selling shares. The average price target of $98.25 represents potential upside of 8.7% from current levels.

Share Price Return in 2011: +14.5%

1 of 3

Select the service that is right for you!

Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!


DOW 17,356.87 +288.00 1.69%
S&P 500 2,012.89 +40.15 2.04%
NASDAQ 4,644.3120 +96.4780 2.12%

Brokerage Partners

Rates from

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs