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
TheStreet Open House

3 Earnings Stocks to Trade for Gains

MINNEAPOLIS (Stockpickr) -- Investors got an early start on earnings season. Putting the nonsense of pure speculation behind us, the market moved excitedly higher last week in anticipation of a strong earnings season. With valuations ultimately determined by profits, the uptick is not surprising given profit growth for many publicly traded stocks.

Within the strong rally, those companies reporting results last week enjoyed solid gains or disastrous results depending on the news being released. In the winners bracket, we rightly identified Darden Restaurants (DRI) and Apollo Group (APOL). Both stocks moved up solidly in the trading day after their respective reports.

On the downside, we also correctly predicted weakness in Family Dollar (FDO) and the earnings disaster that was KB Home (KBH). Family Dollar had been higher on takeover speculation, but actual earnings were not enough to support what was becoming a lofty valuation. KB Home posted a bigger loss as the homebuilding market continues to sputter.

Related: 5 Stocks Poised to Rebound in Second Half of 2011

Other names in the news with big gains or losses were Christopher & Banks (CBK). The clothing retailer posted a surprise profit and shares jumped 13% on Friday. Eastman Kodak (EK) collapsed thanks to a ruling against it by the ITC. Shares of Eastman Kodak lost 14% of their value on the news.

Looking forward, the holiday-shortened week offers a relatively small number of companies releasing results. Here's how to trade three of those stocks.

1 of 4

Select the service that is right for you!

COMPARE ALL SERVICES
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 17,067.56 -30.89 -0.18%
S&P 500 2,002.28 -1.09 -0.05%
NASDAQ 4,598.1880 +17.9170 0.39%

Brokerage Partners

Rates from Bankrate.com

  • 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