If you’re trying to build your earnings season watch list by looking for stocks setting up in a base ahead of their next quarterly report, here’s one that fits the bill: Autonation (AN). It’s expected to release its latest numbers around Jul. 23 and is trading about 4% under a 107.09 entry. The entry is based on a third-stage consolidation, which is less likely than an earlier-stage base to generate a big new run.
Understand that buying a stock just ahead of earnings involves risk since you typically don’t have enough time to build a profit cushion before the latest quarterly numbers come out. Be sure to follow sound buy and sell rules to minimize your exposure.
Autonation saw both earnings and sales growth rise last quarter. Earnings-per-share increased from 94% to 207%. Revenue rose from 4% to 27%.
Consensus analyst estimates call for earnings-per-share growth of 82% for the quarter, and 43% growth for the full year. Earnings estimates for the full year were recently revised higher.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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