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4 Stocks: 1 Hot, 3 Not

Chris Johnson and Jon Lewis, August 14, 2009 Free Trading Guides

Trade Options to Get Richer, Quicker! Here's how.

Have you ever seen a stock drop in price despite an earnings report that met or even beat expectations? Or one that rallies furiously after merely meeting expectations? What gives? The answer is often contained in the sentiment environments surrounding the stocks prior to the event.

We'll go a little more in-depth about why this happens and then look at four stocks that are set to report earnings next week: GameStop (GME), Hewlett-Packard (HPQ), Sears Holdings Corp. (SHLD) and Deere & Co. (DE).

The Street is in love with three of these stocks -- and they are the ones that will likely sell off after earnings. And one of these stocks is getting no love from the Street, but we think it's going to rally big after announcing earnings. Keep reading to find out which stock is hot and which three are not.

Next: Why Do Some Stocks Drop After Good Earnings?

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