Can Earnings Be Predicted?

Today, I'm going analyze three stocks that are releasing their earnings after the close today. I'm going to see if I can determine where the stock is headed after earnings.

I'll be using the Trade Triangle technology to help me analyze the direction of the market in a very methodical way, all before the companies report their earnings.

Here is what the experts are estimating for earnings for each of the three companies. Autodesk Inc. (NASDAQ:ADSK) estimated to earn .08 cents a share. The Fresh Market Inc. (NASDAQ:TFM) estimated to earn .22 cents a share and The Gap Inc. (NYSE:GPS) estimated to earn .63 cents a share. The earnings are a consensus view of many analysts that track these stocks.

Autodesk Inc. (NASDAQ:ADSK)
With green monthly and weekly Trade Triangles the trend in this stock is clearly on the upside. I expect to see this market beat earnings and move higher.
My prediction: A beat on earnings. Stock higher in after-hours trading.

The Fresh Market Inc. (NASDAQ:TFM)
This stock presents a little more of a mixed picture, the Trade Triangles show that the long-term trend is down with a red monthly Trade Triangle and the intermediate-term trend is up with a green weekly Trade Triangle. When you have a conflict between two Trade Triangles it indicates a sidelines position for this stock.
My Prediction: Mixed earnings. No big change in stock after-hours.

The Gap Inc. (NYSE:GPS)
Both the weekly and monthly Trade Triangles are red indicating that the trend is down. It would be a surprise if this stock announced blockbuster earnings. More than likely their earnings will be flat to disappointing.
My Prediction: Flat to disappointing earnings. Stock lower in after-hours trading.

There can be no guarantees in trading and predicting earnings certainly falls in that category. Let's see how things turn out after earnings are announced after the close today.

Stay focused and disciplined.

Every success with MarketClub,
Adam Hewison
Co-Creator, MarketClub

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