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Which Stocks Look Ready to Pop and Drop with Earnings Next Week?

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 two years, BullMarket.com used the data it has collected to correctly predict investor reactions for nearly two-third of the stocks it's previewed.

In its latest earnings preview, BullMarket.com looks at several popular stocks, including LinkedIn (LNKD - News), OpenTable (OPEN - News), Whole Food (WFM - News), Visa (V - News), MasterCard (MA - News), Acme Packet (APKT - News), Enterprise Products Partners (EPD - News), CVS Caremark (CVS - News), Skullcandy (SKUL - News), and Green Mountian (GMCR - News).

Here is just a tiny sample of what BullMarket.com wrote about Enterprise Products Partners: Enterprise Products Partners L.P. is a North American midstream energy company providing a range of services to producers and consumers of natural gas, natural gas liquids (NGLs), crude oil, refined products and certain petrochemicals.. ...

Last quarter, the master limited partnership (MLP) reported its Q4 distributable cash flow (DCF) soared to $1.41 billion from $571 million in the comparable year-ago period, good for a coverage ratio of 2.7x its payout. Excluding proceeds from the sale of assets, DCF was a record $816 million and the coverage ratio was 1.5x.

DCF for the year was $3.7 billion, or $2.7 billion excluding asset sales. The coverage ratio for the year excluding the asset sales was 1.6x.

"Turning to our financial and operating performance, we reported record results again this quarter, supported by growth in natural gas, NGL and crude oil production in the shale regions, as well as strong NGL sales margins," CEO Michael Creel said. "Our integrated system continues to operate at record or near-record volumes." Net income attributable to Enterprise in Q4 totaled $721.1 million, or 82 cents per unit, versus $159.8 million, or 33 cents per unit, in the year-ago period when it had less units outstanding. Adjusted EPS was 67 cents.

Revenue for the period increased to $11.6 billion from $9.6 billion a year ago, which was primarily attributable to an increase in sales volumes and energy prices. Gross operating margin was $1.1 billion, up from $829 million a year ago. Operating income was $909 million, up from $505 million, and adjusted EBITDA was $1.2 billion, up from $803 million.

Enterprise's revenues, operating costs, and expenses can fluctuate significantly based on the market prices of natural gas, NGLs and crude oil without necessarily affecting gross operating margin and operating income to the same degree. ...

While EPS is not a very important metric for MLPs, Enterprise has beaten the consensus seven of the past eight quarters. During that span, the stock has risen the next session six of eight quarters. Seasonally, the stock has risen once and been unchanged once in the last four years. ...

Outside of earnings, Enterprise is one of our favorite income-oriented stocks for the long haul. It has a strong organic pipeline of growth projects, a robust coverage ratio, a great management team, and a cost of capital advantage not having to pay incentive distribution rights (DRs) since it bought out its GP.

It is also well positioned with its vertically integrated asset base and position in NGL-rich areas such as Eagle Ford. Taken all together, this should lead to solid distribution growth for years to come. ...
The full BullMarket.com earnings analysis includes a look at historical earnings data and EPS trends for the companies above and more; examines past investor reactions to earnings in various contexts; gives options activity analysis; reviews previous-quarter earnings; and gives an opinion on both what earnings will look like and how investors will react based on the aforementioned data points.

  • to be bullish on eBay (EBAY - News) ahead of earnings.
  • to be bearish on Decker Outdoors (DECK - News) ahead of earnings.
  • to be bearish on Netflix (NFLX - News) ahead of earnings.
  • to be bullish on Apple (AAPL - News) ahead of earnings.
  • A daily investment service that is committed to creating long-term wealth for its members, BullMarket.com's Recommended List of stocks is up 33.3% from 2008-2011 versus a -14.4% return for the S&P, a 47.7% outperformance, topping the benchmark each year since the start of the Great Recession. Subscribers receive actionable market commentary, access to 40+ stock ideas on the Recommended List, and real-time trade alerts. Plus, sign up for a free trial today to view Bull Market's in-depth Special Reports - including its annual High Yield and MLP reports - and its timely Earnings Previews, which are published every Friday during the heart of earnings season. Get a Risk-Free Trial to Bull Market Today! (Please note returns are unaudited.)