[Last time], we talked about the pre-season earnings trend that we can use to get quick, predictable profits.
I’ve been knee-deep in my technical charts, pinpointing the absolute best stocks that stand to benefit the most from this summer earnings season activity.
And I’ve narrowed it down to just three easy stocks that you can buy right now, a full month ahead of their earnings reports.
For the next week, we’re going to see lighter volume on the market as people head out to the beach and enjoy our newfound post-pandemic freedom.
But after that, all hell will break loose because the last two weeks of June will kick off the earnings pre-season.
When this happens, investors will be betting on stocks like a horse gambler at the Kentucky Derby.
They’re going to be putting money into any company that could give them a substantial, short-term profit, and all this activity will send many stocks surging into their “buy the rumor” rallies.
There’s only one week left for you to position yourself for both “pre-season rally profits” and “earnings report profits.”
Here’s my exact price target for these three stocks…
CJ’s First Pre-Season Pick:
Fastenal Company (NASDAQ: FAST)
FAST is one of my favorite housing-related companies.
They are the Swiss army knife of the housing industry, and their products are used on everything from framing a house to building a couch.
Although I feel like the housing sector has hit its highs, I’m extremely bullish on this stock.
Here’s why.
In addition to the housing connection, FAST provides a catalog of products that includes manufacturing, green products, faculty management products and more.
In other words, they sell a lot more stuff than just fasteners.
This stock has been one of my perennial earnings trade stocks as the moves have become predictable to forecast, and this pre-earnings move looks to be a good one.
Shares are trading at $53 right now but have been seen a volatility squeeze indicating that a move in the stock is imminent.
Currently, the 20- and 50-day moving averages are in position to provide support for FAST shares as the continue to trade in their range, but the fact that earnings are approaching will change that as we should start to see volume move the stock higher.
I’m watching thee $54 level as the trigger price for a “buy the rumor rally” that will propel shares to a short-term target of $58.
From there, the earnings announcement should take over to push shares through $60 before seeing the sellers come in to take profits.
CJ’s Second Pre-Season Pick:
Delta Air Lines, Inc. (NYSE: DAL)
DAL and other airline stocks are getting ready to emerge as one of the last wave of “get out there” stocks as business travelers are set to start taking to the skies sometime after Labor Day.
The return of the business traveler will be one of the largest focuses for DAL as they typically generate higher margins and more frequency than the casual traveler that is already taking to the air.
DAL will announce their next quarterly results on July 15, 2021, what is considered to be the first real week of the next earnings season.
The month ahead of last quarter’s earnings saw a 38% increase in share price as investors expected the company to finally come through with an earnings beat.
But that wasn’t the case and the stock slipped into a period of low volatility trading range activity that is about to end.
My volatility filter identified DAL as a volatility candidate this week, indicating that the price is ready to start breaking out of its low volatility trend as a “buy the rumor” rally starts to lift share prices higher.
With support from the rising 50-day and momentum growing, I am targeting a move from $47 to $53 ahead of the upcoming earnings report.
CJ’s Third Pre-season Pick:
BlackRock, Inc. (NYSE: BLK)
One area of the market that is getting ready to move into a sweet spot is the “capital markets” sector of the financial industry.
Companies like KKR (NYSE: KKR) and BLK are in the business of buying undervalued assets and companies, with the goal of generating more value from the same asset.
The aftermath of the COVID pandemic is creating more opportunities for these companies, meaning that business will be good for the rest of 2021.
BLK missed their earnings target last quarter but showed strong asset growth (39% year over year) building expectations that the company will pick-up steam as we head into the second half of 2021.
From a technical perspective, BLK share are trading in a solid bullish trend supported by strong buying volume and as the stock reaches towards the $900 market (yes, this is one of those companies that we all wish would split their prices).
Buying these three stocks right now will put you in a position to take home a quick, predictable profit a few weeks from now.
Until next time,
— Chris Johnson
Source: Straight Up Profits