Stock market earnings, a look back at the week

I know many of you have read my earning preview articles, and those that work with me know that I like to trade stocks after the earnings release and not before.
If you missed my Trading Stocks During Earnings Season article published on Jan. 11, 2012 please use the link that will open it in a new window.

Today I thought we could use the method described above and take a look back at some names that reported earnings this past week and if you have time after perhaps you can look at your favorite charts and see the impact a earnings report can have on a stock. Investor's Business Daily has great charts for this purpose.

America's Car-Mart, Inc. (CRMT) On February 15th reported earnings growth of almost 40% and revenue growth near 14% "The Company repurchased 98,201 shares of its common stock during the third quarter." (GlobeNewswire)
The stock rewarded investors with a 17% surge in price and a new 52 week high. This is a small cap. stock with less than 10 mil. shares outstanding and a market cap just under half a billion.
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Rackspace(R) Hosting, Inc. (RAX), the service leader in cloud computing, announced financial results on February 13th and posted a 80% increase in earnings per share (EPS) and a 32% increase in revenue. The stock climbed to a new 52 week high on heavy volume after the report and we may now be seeing the light volume pull back described in our article on trading earnings. Even with that the stock closed higher by 9% on the week.
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Fossil, Inc. (FOSL) reported EPS growth of 28% and a sales increase of 18% .
Fossil is a global design, marketing and distribution company that specializes in consumer fashion accessories. The stock was rewarded with a 17% gain on the week in heavy volume.
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Not all good earnings were rewarded though, Generac Holdings Inc.(GNRC), a leading designer and manufacturer of generators and other engine powered products, reported 55% EPS growth and yet the stock was sold off right after and even though it found some buyers on Friday closed the week with a 7% loss.

This should allow you to see that when you stay for a company earnings report you have a 50 / 50 chance of the trade going in your favor. I believe that if you use the approach described in the article your odds will increase.. As always if you would like to talk about any of this further I can be reached by email at profit@equitytrader.me

Best Wishes, $$$, ET.
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