April 13th – 18th Earnings Basket Weekly Uptrend Opportunity based On 1.00 Lot Calculation:
EARNINGS SEASON APRIL 13 – 18
|
Company |
Ticker |
Sectors |
Earnings Date |
Time |
|
J.P. Morgan |
#JP_Morgan |
Banking and Financial Services |
April 13, 2022 |
PREMARKET |
|
Wells Fargo |
#WELLSFARGO |
Banking and Financial Services |
April 14, 2022 |
PREMARKET |
|
Goldman Sachs |
#GS |
Banking and Financial Services |
April 14, 2022 |
PREMARKET
|
|
Morgan Stanley |
#MORGAN_STA |
#MORGAN_STA |
April 14, 2022 |
PREMARKET |
|
Bank of America |
#BOA |
Banking and Financial Services |
April 18, 2022 |
PREMARKET
|
Source: Bloomberg
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The five stocks of consideration are scheduled to report their Q1 earnings mid-April. (April 13-18).
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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.
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According to Bloomberg, the basket has beaten earnings and revenues expectations collectively 64.58% of the time over the last 8 quarters.
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Financial stocks benefit from a rising interest rate environment. At least six more short term rate hikes are expected from the U.S. Federal Reserve in 2022. The central bank is also expected to start shrinking its balance sheet which will cause a rise in longer term interest rates.
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 |
5 of 8 |
5 of 8 |
|
Goldman Sachs |
6 of 8 |
8 of 8 |
|
Morgan Stanley |
7 of 8 |
7 of 8 |
|
Bank of America |
7 of 8 |
3 of 8 |
Source: Bloomberg
STOCK PRICE REACTION: BASED ON STATISTICAL ANALYSIS (PAST 8 QUARTERS)1
|
Downside potential |
Upside Potential |
|
-2.99% |
+7.25% |
|
Potential Profit/Loss on 1 lot of every stock in the basket2 |
|
|
-$24,169 |
$58,508 |
|
-€22,134 |
€53,582 |
|
-£18,470 |
£44,713 |
|
-C$30,348 |
C$73,468 |
Data Source on Stock Returns and Volatility: Bloomberg
TARGET LEVELS: SUPPORT AND RESISTANCE
|
Company |
Support |
Current Price |
Resistance |
|
J.P. Morgan |
$127.08 |
$131.00 |
$140.49 |
|
Wells Fargo |
$46.08 |
$47.50 |
$50.94 |
|
Goldman Sachs |
$306.54 |
$316.00 |
$338.90 |
|
Morgan Stanley |
$80.52 |
$83.00 |
$89.01 |
|
Bank of America |
$38.80 |
$40.00 |
$42.90 |
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.
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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.
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Calculations for exchange rate used as of 06:57 (GMT+1) 07/04/2022.
Fortrade recommends the use of Stop-Loss and Take-Profit, please speak to your Client Manager regarding their use.
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You may wish to consider closing your position in profit, even if it is lower than suggested one.
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Trailing stop technique can protect the profit – Ask your Client Manager for more detail.