Earnings season can be a stressful time for investors. Stocks can swing wildly following an earnings beat or an earnings miss, and no one can know for sure what to expect when a company is about to report its quarterly results.
While the earnings season can lead to sharp sell offs in stocks that report disappointing results, it would not be wise to merely sit on the sidelines and wait for the season to come to a close before putting our money to work.
Investing is a game of risk, and risk is what ultimately leads to reward when you get into a stock ahead of an upbeat quarterly report.
Some investors prefer to jump into under-performing stocks, that can be bought at a discount, and hope for a big jump following a potential earnings beat. This can certainly lead to rapid gains if you guess correctly, but a more prudent approach is to get into strong stocks, and expect modest post-earnings gains.
When a company posts solid quarterly results, shares will move higher, and the report will keep strength under the stock for the months that follow before the next report.
We want to highlight five stocks that have recently been performing well, that we expect to post solid numbers when they next report. Upbeat reports will help these stocks build on recent gains, and continue to trend higher through the summer months.