Medtronic Poised to Jump After Earnings
by Jon Lewis 08/19/09
Free Trading Guides
Medtronic (MDT), a major player in the medical appliance and equipment field (pacemakers, defibrillators, stents, catheters, drug delivery devices, etc.), reports earrings on Aug. 25.
The company has a solid earnings track record, having missed just one analyst estimate in the past 18 quarters. The Street expects a modest profit increase of just 8% for the quarter, which compares favorably to the average 12% gain for the past four quarters.
More Trader Alerts
On the chart, Medtronic has been rising steadily since March, gaining more than 50% since the bottom.
Recently, the shares have found solid support from their ascending 10-day moving average, a trendline the stock hasn't closed a day below in more than a month. Note how the 10-day provided a solid foundation during this morning's market weakness.
More By This Expert
AIR Ready to Take Off After Earnings
Aerospace supplier and service provider AAR Corp. (AIR) looks poised for a major move higher after it announces earnings.
Should You Shop for Calls or Puts on Whole Foods?
Whole Foods Markets Inc. (WFMI) has a habit of making big moves after reporting earnings, and traders who take the right side of this bet could be handsomely rewarded.
Take a Gamble on This Earnings Play
Casinos have been a hot item lately, and gaming supply company Shuffle Master (SHFL) could pack a strong earnings punch next week.
Next week should be a slow trading week, which means that stock prices could be more volatile than usual, especially if a company surprises or disappoints with earnings -- I have one of each for you.
Buy Calls on This Earnings Loser
This stock missed earnings estimates in three of the past four quarters, yet made double-digit gains in the weeks following. And it's about to announce earnings again.
