January 14th – 19th Earnings Basket Weekly Uptrend Opportunity based On 1.00 Lot Calculation:
EARNINGS SEASON JANUARY 14 – 19
Company |
Ticker |
Sectors |
Earnings Date |
Time |
J.P. Morgan |
#JP_Morgan |
Banking and Financial Services |
January 14, 2022 |
PREMARKET |
Wells Fargo |
#WELLSFARGO |
Banking and Financial Services |
January 14, 2022 |
PREMARKET |
Goldman Sachs |
#GS |
Banking and Financial Services |
January 18, 2022 |
PREMARKET |
Morgan Stanley |
#MORGAN_STA |
#MORGAN_STA |
January 19, 2022 |
PREMARKET |
Bank of America |
#BOA |
Banking and Financial Services |
January 19, 2022 |
PREMARKET |
Source: Bloomberg
- The five stocks of consideration are expected to report their Q4 earnings mid-January. (January 14-19).
- The stocks belong to the Banking and Financial Sector They are all part of S&P 500. J.P. Morgan and Goldman Sachs are also part of the prestigious Dow Jones Industrial Average.
- According to Bloomberg, the basket has beaten earnings and revenues expectations collectively 76.25% of the time over the last 8 quarters.
- Financial stocks benefit from a rising interest rate environment. At least three rate hikes may be expected from the U.S. Federal Reserve in 2022.
HISTORICAL PERFORMANCE (PAST 8 QUARTERS): EARNINGS and REVENUE
Company |
Earnings Beats Expectations |
Revenues Beats Expectations |
J.P. Morgan |
7 of 8 |
7 of 8 |
Wells Fargo |
4 of 8 |
4 of 8 |
Goldman Sachs |
6 of 8 |
8 of 8 |
Morgan Stanley |
7 of 8 |
7 of 8 |
Bank of America |
7 of 8 |
4 of 8 |
Source: Bloomberg
STOCK PRICE REACTION: BASED ON STATISTICAL ANALYSIS (PAST 8 QUARTERS)1
Downside potential |
Upside Potential |
-3.13% |
+7.20% |
Potential Profit/Loss on 1 lot of every stock in the basket2 |
|
-$30,980 |
$71,228 |
-€27,404 |
€63,004 |
-£22,884 |
£52,614 |
-C$39,378 |
C$90,536 |
Data Source on Stock Returns and Volatility: Bloomberg
TARGET LEVELS: SUPPORT AND RESISTANCE
Company |
Support |
Current Price |
Resistance |
J.P. Morgan |
$162.25 |
$167.50 |
$179.56 |
Wells Fargo |
$50.86 |
$52.50 |
$56.28 |
Goldman Sachs |
$394.25 |
$407.00 |
$436.31 |
Morgan Stanley |
$100.74 |
$104.00 |
$111.49 |
Bank of America |
$46.50 |
$48.00 |
$51.46 |
Note: Support and Resistance Levels have been calculated by using upside and downside potential figures.
Please note that past performance does not guarantee future performance.
1-Calculation Downside/Upside Potential: Average price reaction for all five stocks from 5 trading sessions prior to the earnings date release for the last 8 quarterly earnings releases.
2-Profit/Loss Calculation (**): Based on 1 lot (*) on each of the five stocks (5 lots). Range: based on the statistical analysis.
* J.P. Morgan, Morgan Stanley, Bank of America and Goldman Sachs: 1.00 lot is equivalent to 1000 units. Wells Fargo: 1.00 lot is equivalent to 5000 units.
** Calculations for exchange rate used as of 09:52 (GMT) 05/01/2022.
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
*** You may wish to consider closing your position in profit, even if it is lower than suggested one
**** Trailing stop technique can protect the profit – Ask your Client Manager for more detail