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BlackBerry, Pier 1, Rite Aid, Darden: How to Trade Before Earnings

NEW YORK (TheStreet) -- Today we'll explain how to trade eight companies that plan to report earnings later this week. They include BlackBerry (BBRY - Get Report), Rite Aid (RAD - Get Report) and Pier 1 Imports (PIR). All eight have significant year-to-date gains or losses going into earnings.

Can Blackberry and Rite Aid continue their turnaround stories? Can Pier 1 Imports begin a turnaround?

Here are the eight earnings profiles. Two "Crunching the Numbers" tables follow.

BlackBerry ($8.05), up 8.2% year to date. The company is scheduled to report before the bell Thursday morning. Analysts expect the company to report a loss of 28 cents a share. Shares traded as high as $10.90 on Feb. 28 then as low as $7.01 on April 14 and have been below their 200-day simple moving average since March 28. A positive reaction to earnings will begin a trend above their 200-day SMA, which is now at $8.20.

The weekly chart shifts to positive given a close this week above the five-week modified moving average at $7.78 with the 200-week SMA at $21.64. A monthly pivot is $8.13 with a quarterly risky level at $11.16.

Darden Restaurants (DRI) ($49.59), down 8.8% year to date. Analysts expect the company to report EPS of 93 cents before the opening bell on Friday. The restaurant owner recently sold its Red Lobster brand. This stock has been trading back and forth around its 200-day SMA at $49.89 since Jan. 21. Darden is one of Jim Cramer's Top Picks.

The weekly chart is neutral with the stock between its 200-week SMA at $49.16 and its five-week MMA at $49.82. Annual value levels are $48.40 and $44.50 with monthly and quarterly risky levels at $50.80 and $51.25, respectively.

CarMax (KMX) ($44.29), down 5.8% year to date. Analysts expect the used car retailer to report EPS of 67 cents before the opening bell on Friday. The stock had been below its 200-day SMA at $47.27 since March 24, trading as low as $42.54 on April 15.

The weekly chart is neutral with its five-week MMA at $44.81 and its 200-week SMA at $36.47. An annual value level is $37.69 with weekly and monthly risky levels at $45.56 and $45.90, respectively.

Kroger (KR) ($46.89), up 19% year to date. Analysts expect the grocery retailer to report EPS of $1.05 before the opening bell on Thursday. The stock set an all-time intraday high at $48.56 on June 9 and has been above its 200-day SMA at $41.94 since Feb. 19.

The weekly chart is positive but overbought with its five-week MMA at $46.56. Semiannual and monthly value levels are $44.89 and $44.60, respectively, with weekly and quarterly risky levels at $49.90 and $51.65, respectively.

Pier 1 Imports ($18.18), down 21% year to date. Analysts expect the retailer of furniture and home goods to report EPS of 20 cents before the opening bell on Thursday. The stock gapped below its 200-day SMA on Jan. 9 and traded as low as $16.86 on June 4 with the 200-day SMA now at $19.89.

The weekly chart shifts to positive given a close this week above the five-week MMA at $17.89 with its 200-week SMA a key support at $16.54. Monthly and annual value levels are $17.61 and $15.24, respectively, with a quarterly risky level at $23.92.

Rite Aid ($7.16), up 42% year to date. Analysts expect the pharmacy chain to report EPS of 4 cents before the opening bell on Thursday. The stock set a multiyear intraday high at $8.61 on June 4 and is well above its 200-day SMA at $5.99. TheStreet's Shawn Ingram explains why Right Aid still has a hold rating

The weekly chart is negative with its five-week MMA at $7.44. A semiannual value level is $5.40 with a quarterly pivot at $7.03 and monthly and weekly risky levels at $7.92 and $8.13, respectively.

Smith & Wesson (SWHC) ($16.65), up 23% year to date. Analysts expect the manufacturer of firearms to report EPS of 40 cents after the closing bell on Thursday. The stock set a multiyear intraday high at $17.28 on June 11 after trading as low as $11.31 on Feb. 26 when it held its 200-day SMA now at $13.13.

The weekly chart is positive but overbought with its five-week MMA at $15.82. Semiannual value levels are $14.93 and $12.03 with a quarterly pivot at $16.54 and weekly and monthly risky levels at $17.56 and $18.11, respectively.

Tibco Software (TIBX) ($21.06), down 6.3% year to date. Analysts expect the network software company to report EPS of 11 cents after the closing bell on Thursday. The stock has been below its 200-day SMA since Jan. 22 trading as low as $18.20 on June 4 with its 200-day SMA now at $22.41. TheStreet's Shawn Ingram explains how a Barclay's lowered price target will effect this stock.

The weekly chart is positive with its five-week MMA at $20.40 with its 200-week SMA at $24.21. Weekly and monthly value levels are $20.15 and $18.09, respectively, with an annual risky level at $24.28.

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