Stocks tend to be most volatile around earnings season, when a good or bad report can make or break it. However, a good or even great earnings report doesn't necessarily translate into a huge pop for a stock.
During earnings season, BullMarket.com publishes a comprehensive 20- to 30-page Earnings Preview report for the week ahead each Friday.
Over the past year, BullMarket.com used the data it has collected to correctly predict investor reactions for approximately two-third of the stocks it's previewed.
In its latest earnings preview, BullMarket.com looks at several popular stocks, including Lowe's (LOW), Hain Celestial (HAIN), Intuit (INTU), Dell (DELL), Best Buy (BBY), Toll Brothers (TOL), Pandora Media (P), Hewlett-Packard (HPQ), and Salesforce.com (CRM).
Here is just a tiny sample of what BullMarket.com wrote about Toll Brothers:
Toll Brothers has topped analyst EPS estimates six of the past eight quarters, missing estimates twice. During that span, the stock has risen the next session seven of eight quarters. Seasonally, the stock has risen three times in the last four years.
Last quarter, the home builder reported second-quarter net income of $16.9 million or 10 cents per share, compared with a loss of -$20.8 million, or -12 cents a share, a year earlier. The quarter included a $1.2 million net tax benefit, $2 million of pre-tax inventory write-downs, and a $1.6 million recovery of prior joint venture impairments.
Its second-quarter revenues totaled $373.7 million while its delivery of 671 units to buyers was up by 17% in dollar terms and 14% in units compared with the same period a year ago.
Toll reported it had signed contracts worth $754.7 million for 1,290 units during the quarter, up 51% in dollars and 47% in units versus fiscal year 2011. The average price per contract was $585,000. The company said it signed 5.61 units per community during the quarter, marking its best performance in a second quarter since its 2006 fiscal year.
Its backlog at quarter-end totaled $1.5 billion, or 2,403 units, increased 49% in dollars and 37% in units compared to fiscal year 2011. The average price of units in backlog was $624,000. The average price was "outsized," the company said, due to condo units in backlog averaging $3.7 million from the Terrain, which is under construction on Manhattan's Upper East Side.
Toll Brothers ended the quarter with homes under construction and for sale in 230 communities compared to 203 at the end of 2Q 2011. ...
Outside of earnings, the housing market certainly isn't flashing green at this point, but it isn't in the death spiral it was in five years ago. Having said that, Toll Brothers would be one of our picks to prosper coming out of the recession given its focus on the luxury home market. Just as more affluent consumers have been powering some of the retail sales growth we've chronicled, they are also likely to take advantage of low rates to buy new homes. ...
Just a few of the recent correct calls BullMarket.com made for Q2 were:
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