The watch list for the week has a few new names that are set to run higher, along with several candidates from previous weeks, as earnings season unfolds.
Banks – Earnings Season
Banks start off the week reporting earnings on Tuesday, for the second quarter. J.P.Morgan Chase (JPM) and Citigroup (C) showed resilience on Friday, after an early morning dip. We anticipate Goldman Sachs (GS) and Bank of America (BAC) will follow a similar route on Tuesday when they report earnings before the market opens.
Added to the watch list this week is ICHR. The stock is set to either hold at this level or break higher. The 60-minute chart will be our trigger. Earnings are scheduled for August 10.
The daily is showing promise, as MACD turns quickly, marking an end to the bearish momentum. Watch RSI on both time frames. More than likely this stock will be closer to the 25 zone before earnings. A measured move of +3.00 points will likely unfold if the 60-minute triggers.
Comments from the CEO during Q1 conference call are enlightening.
“In Q1 we grew our revenues by over a 100% from Q1 of 2016 and we grew our year-over-year profits by over 220%, this is consistent with our stated goal of growing profits faster than revenues. And faster adjusted net profit margin of almost 10% was our all-time best and very close to the long term model we announced during our IPO road show. At the midpoint of our Q2 guidance the first half revenue growth was 80% plus without pacing both our peers and our customers.
Since our last call wafer fab equipment spending forecast have improved towards $38 billion for this year. More importantly the forecast for second half shipments have strengthened this time improved spending plans 3D NAND and foundry. This has led to one of our customers revising our outlook from a front half weighted year to a more balanced year. This will benefit our shipment profile as well.”
Watch List for the Week
Here is the full watch list of winning stocks picks for your use. Note many of these stocks are higher in the pre-market session. Even if they gap up, use the Trade of the Day setup to gauge your entry and exit points (stops). Use the calculator to make sure you meet your goals.
Be sure to watch the weekend video news letter prior to the bell.
We will be LIVE around 9:15 AM to cover additional thoughts on the watch list this morning.