This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
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 Stocks to Trade Ahead of Earnings

Stocks in this article: YUM COST HELE RBN STZ JBL MU

MINNEAPOLIS ( Stockpickr) -- Third-quarter earnings season begins in earnest when Alcoa (AA) reports results on Oct. 11. For those looking to get a head start on trading earnings, several big names report results this week, including Costco (COST), Yum Brands (YUM), Marriot International (MAR) and Constellation Brands (STZ).

Investors have endured the brunt of speculative selling over the last few months. With earnings, we can move beyond speculation and begin adjusting to actual facts. Sellers are betting on a recession, and they may be right.

Recent economic data would seem to suggest that recession is inevitable -- as does as a recent report from the Economic Cycle Research Institute. In fact, the leading economic indicators that the institute follows are indicated that a recession may have already begun.

>>5 Rocket Stocks to Buy in October

Despite that gloomy prediction, investors tried to move stocks higher last week. A selloff on Friday erased gains, and the S&P 500 ended the week off 0.44%. Once again the action was entirely unpredictable making it difficult for investors and traders alike.

Those trading earnings had an easier time of it. Two of the trades mentioned here last week did quite well. The suggested short of Micron (MU) was a winner, with that stock down 14% after a very disappointing earnings report. Another winner was the long recommendation of Jabil Circuits (JBL); the semiconductor stock gained 10% after reporting strong earnings.

Where will the winners be this week? Here are five stocks to trade in advance of third-quarter earnings season.

1 of 6

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!

Markets

DOW 18,053.71 +23.50 0.13%
S&P 500 2,088.77 +6.89 0.33%
NASDAQ 4,806.8590 +33.3870 0.70%

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