If you’re looking for stocks that are setting up in a base ahead of their next quarterly report, here’s one that fits the bill: Applied Materials (AMAT). It’s expected to report on May 20 and is currently approximately 12% under a 146.10 entry. The entry is based on a second-stage flat base.
Be aware that jumping into a stock right as it gets ready to report means you likely won’t have enough time to build a profit cushion before the release. That leaves you exposed to a sudden downturn if the company misses analyst estimates or provides weak guidance. You can minimize your exposure by waiting to see how the company reports and how the market reacts. Another way to minimize the risk of a post-earnings sell-off is to use an options strategy.
Applied Materials posted 42% earnings-per-share growth in the latest quarterly report. Sales gains came in at 24%.
Analysts expect earnings growth of 69% for the quarter, and 45% growth for the full year. Applied Materials’ earnings estimates for the full year were recently revised higher.
Applied Materials has a 96 Composite Rating and holds the No. 5 rank among its peers in the Electronics-Semiconductor Equipment industry group. ASML Holdings (ASML) is the top-ranked stock within the group.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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