Written by Rich B. Meier
TopEquityNews.com
As third-quarter-earnings slow to a crawl, the number of trading candidates shrivels too. There is a plus side having a limited number of opportunities to capitalize on a positive earnings report. The advantage is investors can benefit from the elephant through a pig effect. Be one of the few to smoke past Wall Street’s estimates, and all the money chases the hot report, which magnifies the impact.
Using our exclusive Earnings Power scoring system, Top Equity News has identified 10 companies with the potential to put a big number on the board. They include:
Pep Boys – Manny, Moe & Jack (PBY) Earnings Power: 10 of 12
Earnings Date: Monday, Dec. 5 – after close
Estimate: $0.13
Liquidity Services, Inc. (LQDT) Earnings Power: 10
Earnings Date: Tuesday, Dec. 6 – before open
Estimate: $0.19
Vera Bradley, Inc. (VRA) Earnings Power: 10
Earnings Date: Tuesday, Dec. 6 – after close
Estimate: $0.28
The Men’s Wearhouse, Inc. (MW) Earnings Power: 11
Earnings Date: Tuesday, Dec. 6 – after close
Estimate: $0.66
Smithfield Foods Inc. (SFD) Earnings Power: 11
Earnings Date: Thursday, Dec. 8 – before open
Estimate: $0.69
John Wiley & Sons Inc. (JW-A) Earnings Power: 10
Earnings Date: Thursday, Dec. 8 – before open
Estimate: $1.00
Costco Wholesale Corporation (COST) Earnings Power: 11
Earnings Date: Thursday, Dec. 8 – before open
Estimate: $0.79
Layne Christensen Co. (LAYN) Earnings Power: 10
Earnings Date: Thursday, Dec. 8 – before open
Estimate: $0.49
CIENA Corp. (CIEN) Earnings Power: 10
Earnings Date: Thursday, Dec. 8 – before open
Estimate: $0.07
Golub Capital BDC, Inc. (GBDC) Earnings Power: 10
Earnings Date: Thursday, Dec. 8 – after close
Estimate: $0.30
Of this group, the stock with the most explosive recent history of post earnings performance is Vera Bradley, Inc. (VRA). The maker of women’s handbags, accessories, travel and leisure items has rallied by as much as 36% in the days immediately following its quarterly check-up. Shares have risen by at least 6.9% three of VRA’s last four announcements. That’s hot.
Based on its stock chart, shares might have just completed an upside-down “T” pattern; which means a near-term bottom may have been put in place near $34. In the past 12 months, Vera Bradley’s MACD line has reversed up five times when trending down below zero. Four of the five turnabouts preceded a decent rally in price.
A solid Tuesday announcement should take shares to at least $40, if not $42; break $42 and $45 is up next. Should she disappoint, expect the stock to drop back to support near $34. Yesterday, VRA closed at $37.15.
Trading Earnings: Vera Bradley Has Earnings in the Bag is an article from: 
