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
TheStreet Open House

How to Trade Tuesday's Earnings: Goldman Sachs, JPMorgan and More

Stocks in this article: CMAGSJBHTJNJJPMOZRK

NEW YORK (TheStreet) -- It is extremely important that investors and traders understand the risk/reward for a stock both before and after a company reports quarterly earnings.

So far in 2014 the Dow Jones Industrial Average is up just 2.2%. Among the index's components, Goldman Sachs (GS) is down 7% year to date, while Johnson & Johnson (JNJ) is up 15% and JPMorgan Chase (JPM) is down 4.6%. These three are among the stocks slated to report earnings before the market opens Tuesday.

Also scheduled to report is regional bank Comerica (CMA), which is up 6.2% so far this year while the regional bank index is up just 2.5%. Community bank Bank of the Ozarks (OZRK) is up 16%, while the ABA Community Bank Index is down 1.4%

Roche, Exelixis Skin Cancer Drug Delays Tumor Progression

Boeing 747 Fades Out, but Lufthansa Flies a Fresh One to JFK

The Dow Transportation Average is up 12% year to date with component JB Hunt (JBHT) down 4.4%.

These pre-earnings volatility differentials are the reason investors and traders need to focus on my two "Crunching the Numbers" tables, which provide current readings for both stock-specific fundamental data and simple readings of technical analysis.

The most important parts of the second table are action levels: value levels at which to buy on weakness and risky levels at which to sell on strength.

Let's take a look at the stock profiles: All six companies report quarterly results before the opening bell on Tuesday.

Comerica ($50.47) traded as high as $53.50 on March 21 and as low as $45.34 on May 15, when it tested its 200-day simple moving average, which is now up to $46.91. Analysts expect the bank to report earnings per share of 76 cents. The company's 12-month trailing price-to-earnings ratio is 16.6 with a dividend yield of just 1.6%.

The weekly chart is positive with a five-week modified moving average at $49.75. Semiannual value levels are $45.34 and $41.89 with quarterly and monthly risky levels at $53.31 and $53.70, respectively.

Goldman Sachs ($164.80) has been trading back and forth around its 200-day SMA since Feb. 3 and closed Friday just above this average at $164.76. Analysts expect the investment bank to report EPS of $3.07. The stock's 12-month trailing P/E ratio is 13.1, and its dividend yield is just 1.3%.

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 16,805.41 +127.51 0.76%
S&P 500 1,964.58 +13.76 0.71%
NASDAQ 4,483.7150 +30.9230 0.69%

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