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
TheStreet Open House

3 Earnings Stocks to Trade for Gains

Stocks in this article: HELE ISCA WDFC

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

Check Out Our Best Services for Investors

Action Alerts PLUS

Jim Cramer and Stephanie Link reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

Jim Cramer's protégé, 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
Try it NOW
Try it NOW
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

Jim Cramer's protégé, 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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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 17,164.95 -251.90 -1.45%
S&P 500 1,994.99 -26.26 -1.30%
NASDAQ 4,635.24 -48.1670 -1.03%

Partners Compare Online Brokers

Free Reports

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