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

Chipotle, Netflix and More: How to Trade Monday's Big Earnings News

NEW YORK (TheStreet) -- This earnings season has seen lots of volatility for stocks following quarterly reports. This is why investors need to understand the risk/reward for a stock, including its year-to-date return before its earnings report, and what the key trading levels are.

Today we'll look at how to trade shares of the following companies, which plan to report earnings after the closing bell Monday: Netflix (NFLX), Chipotle (CMG), Texas Instruments (TXN), Zions Bancorp (ZION) and Packaging Corp. (PKG).

The best year-to-date performer is Netflix, which is up 21%. There is a second-place tie between Chipotle and semiconductor giant Texas Instruments, both of which are up 11%.

Apple Will Murder Microsoft and Bury It With BlackBerry's Corpse

Alaska Analysts on Delta Intrusion: 'What, Us Worry?'

Nintendo Should Scrap the Wii U

The PHLX Semiconductor Index, also known as the SOX, is up 20% on the year, so Texas Instruments is a laggard.

The BKW Banking Index is a year-to-date laggard and is up just 2.2%, but component Zions down 3.9%.

Packaging Corp., producer of containerboard and corrugated packaging products, is up 6.9% year to date, and its earnings report and guidance should be considered an indicator for broader economic growth.

Let's take a look at the stock profiles. Two "Crunching the Numbers" tables follow.

Chipotle ($592.42) set an all-time intraday high at $622.90 on March 21 then declined to as low as $472.41 on April 28 as investors temporarily became concerned about elevated price-to-earnings ratios. The stock was below its 200-day simple moving average as a short-term "reversion to the mean" between April 28 and May 21. This moving average is now at $538.06.

Analysts expect Chipotle to report earnings per share of $3.05. The stock's price-to-earnings ratio, based on trailing 12-month earnings, remains elevated at 54. Chipotle is not a dividend stock.

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 17,031.14 +43.63 0.26%
S&P 500 1,984.13 -1.41 -0.07%
NASDAQ 4,518.9020 -48.6960 -1.07%

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