Huge Earnings Week -- Preview

July 31, 2023

After last week’s FOMC announcement of yet another rate hike, attention now turns squarely to corporate earnings.

And this week, we have an absolute plethora of opportunities.

In fact, here are some “fun facts” from the Q3 Week 3 LikeFolio Earnings Scorecard that was sent to members last night:

  • 44 Total Trade Opportunities – I’m not sure if this is a record or not, but it’s got to be close. And that’s not the number of companies reporting – that’s the number of companies where the LikeFolio Earnings Score is lower than -20 (bearish) or higher than +20 (bullish). Amazing!
  • A Neutral Mix -- With 24 bullish opportunities, and 20 bearish signals, traders have the opportunity to take the “pick of the litter”… finding trades that align with their overall market outlook or hedge against existing positions.   We love it when the sheet comes in fairly market neutral like this!
  • Heavier, Later – A huge portion of this week’s trades will still be active Wednesday and Thursday, as a majority of the “big opportunities” are on companies reporting later in the week. I personally like this because it gives me a chance to see how the market is shaping up on the week before I pull the trigger on some of the most exciting plays.
  • Shorts to be Squeezed: This week has 5 “Short Squeeze Specials” on the sheet, with companies posting a positive LikeFolio Earnings Score in combination with a high short-interest that could fuel a monster post-earnings rally.
  • Huge Moves Expected – The “expected move” (calculated using options pricing) is over 10% for 13 of the trade signals we issued. This includes stocks like Coinbase (COIN) at 15%, Wayfair (W) at 17%, and Pinterest (PINS) at 12%.   Big expected moves means big potential profits!
  • “Trade of the Week” Streak -- Every week, Landon reviews the “Trade of the Week” on a video that is sent on Sunday evening to members.  

    In Week 1, we achieved a nice 69% profit on Netflix (NFLX) as the company disappointed investors as our Likefolio Earnings Score predicted.  

    Week 2 added to the trade of the week gains with an awesome 95% profit on a bullish trade on Coursera (COUR), which surged higher on a post-earnings upgrade.

    This week’s Trade of the Week is on Planet Fitness (PLNT), with3 members targeting a 127% profit on Thursday’s earnings report.

Bottom line: It’s a busy week full of big opportunities that could determine the market’s near-term direction.

There’s still plenty of time to get in on the action for this week… and the remaining 7 weeks of this earnings season.  

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