The S&P 500 had a good week due to the impressive start of Q1 earnings and favorable inflation data. In March, the consumer price index rose 5%, lower than the previous month's 6%, and met economists' expectations.
Best Stocks to Trade This Earnings Season
2022-04-27 • Updated
There is a period every stock trader loves the most due to significant movements, increased volatility, and, possibly, big gains. Open your trading apps and be ready to act! Earnings season comes four times a year and we crave to share our expectations with you.
Before we start, remember that stock reports are measured by two main numbers: an EPS (earnings per share) and a revenue. If the actual results exceed expectations, the stock is likely to rise. Also, we need to look for companies' plans: sometimes, these plans are so gloomy that the stock crashes severely (look at the Netflix chart to get the idea).
PayPal reports today!
PayPal is near its two-year low of $83.00 per share. It is a 73% decline from the high of $306.00. During much of 2020 and 2021, the company felt great due to the rise in online transactions. However, technology stocks are shrinking amid rate hikes and rising inflation. The things on the stock market work so that tech stocks are often overpriced (it is still an innovative sector), so they are first in the line to sharp falls.
The local picture on the chart is relatively bullish (because the stock is on the robust support line of $82.00). The stock reached vital support at $82.00 per share. On a better-than-expected report, we suggest opening a buy trade with targets at $93.00, $105.00, and $122.00 (a 44% jump). However, a bad report will crush PYPL severely with a possible target of $60.00 per share.
PYPL daily chart
Resistance: 93.00, 105.00, 122.00
Support: 82.00, 60.00
PayPal will release its report on April 27, after the market close. The analysts expect a $0.89 EPS and a $6.40 billion revenue.
McDonald's is a strong one
McDonald's (MCDONALDS) is feeling great amid general turbulence. Despite closing more than two thousand restaurants in Ukraine and Russia, the company is unlikely to show bad results on the report. Historically, food stocks are winning in times of rising prices because the demand for food isn't decreasing even if food becomes more expensive. It's called inelastic demand.
The chart confirms the suggestion above. McDonald's is holding its position against the bearish stock market. On the first signs of bullish sentiment in stocks, we expect a rise to the last all-time high at $271.00. Don't enter the trade too early; wait for the report results. If they match expectations or exceed them, consider buying with a target of $260.00. On bad reports, the company may touch the trendline at $243.00.
McDonald's daily chart
Resistance: 260.00, 271.00
Support: 243.00, 239.00
McDonald's will release its report on April 28, before the market open. The analysts expect a $2.18 EPS and a $5.60 billion revenue.
Robinhood risks losing everything
Recently, Robinhood (#HOOD) said they would fire 9% of their workers to decrease spending. This gives us a hint about the current state of the business. After several big scandals (one with GameStop stock and the other with unfair trading algorithms), #HOOD is not feeling great. The earning report will likely show a growing list of concerns and bad financial results. Thus, we don't expect the stock to rise anytime soon.
There is a bull trap on the H4 chart, and the stock is on the vital support line. On a breakout of the $10.00 – 9.50 level, we are likely to decrease to $6.00 per share. There is a slight chance that low expectations result in a better-than-expected release. In this case, the stock may rise to as high as $13.80.
#HOOD H4 chart
Resistance: 12.00, 13.80
Robinhood will release its report on April 28, after the market close. The analysts expect a $0.31 EPS and a $355.78 million revenue.
The previous year 2022, was undoubtedly tumultuous for the stock markets, with several stocks plummeting across multiple industries. Analysts have blamed the hard times on inflation, hawkish federal reserve policies, an impending global recession, and the ongoing crisis in Ukraine. This year, however, we're beginning to see some recovery in the stock markets. This article will find a few stocks worth buying this year.
In a call scheduled for January 25, 00:30 am GMT+2, Microsoft will publish the company's earnings for the final quarter of 2022 and comment on the results, projections, and outlook for the nearest future of the company.
Let's dive into the world of gold. Currently, the price of gold, represented by XAUUSD, is stuck in indecision, hovering around the $1,975 mark. The market is anxiously awaiting two important factors: the release of the Federal Reserve's meeting minutes and the extension of the US debt ceiling.
Hey guys, this is the last full trading week in May, and many forward-looking individuals like myself are already preparing themselves to seize whatever opportunities June may have in store. On this note, I will review a few commodities that have satisfied my quest for swing-trading opportunities in the coming month. Follow me!
The Bank of England (BoE) has dramatically shifted its economic forecasts. They no longer expect a recession in the UK and have upgraded their growth projections. This year, the BoE predicts GDP growth of +0.25%, a significant improvement from previous expectations. Next year's forecast is even more optimistic, with a projected growth of 0.75%.