Best Stocks to Trade This Earnings Season

Best Stocks to Trade This Earnings Season

2022-04-27 • Dikemaskini

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

PYPLDaily.png

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

MCDONALDSDaily.png

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

Support: 6.00

#HOODH4.png

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.

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