EarningsBeats Digest

Published: Mon, 03/22/21

EarningsBeats.com Digest for March 22, 2021

Trading Places Live!

Join Tom Bowley for a briefing on market activity on Mondays and Wednesdays from 9-9:30 am EST before the opening bell. Click here to listen live or visit our YouTube page later today to view the recorded session.

Upcoming Earnings ChartList

To download/view the earnings reports for March 22nd and 23rd , CLICK HERE. Be sure to use the password "EARN2994" when prompted. The password is case sensitive.

Announcements

Check out StockCharts TV's "Chart Madness" later today that includes our Chief Market Strategist Tom Bowley. Just click HERE to learn more and join the fun!

- "Changing of the Guard" Webinar -

Tuesday, March 23, 4:30 PM EST

Join Tom Bowley for a "Changing of the Guard" webinar where he will discuss all the changes taking place in the stock market and what impact that's likely to have in Q2.

This is a FREE event for all EarningsBeats.com community members and you will receive room instructions the day of the event. More details to follow.

This Weak Software Stock Might Be Ready To Explode

I typically stay away from stocks that are showing relative weakness and when we look at a chart of Coupa Software (COUP), I definiitely see relative weakness and breakdowns (red circles below). But we do need to be mindful that COUP made a huge run to the upside in 2020 and the most important price support level on its chart is at or just below 240. We're nearing that level again and unless 240 price support is lost, I'm not giving up on COUP:

Many traders are giving up on many areas of growth, including software ($DJUSSW). I'm not one of those. I know the importance of rapid acceleration of earnings in a low interest rate environment. COUP has seen its EPS accelerate quite rapidly the past few years. But the last two quarters, its year over year earnings growth has turned slightly negative. COUP doesn't report earnings again until June 2021, so there's plenty of time here. I'll be watching that key price support very, very closely. A false breakdown beneath 240 with a recovery back above could signal a major bottom, so I'd watch for that. Also, if software begins gaining ground, I'll be watching to see if COUP turns and leads on a relative basis.

One last thought. Since going public in October 2016, COUP has gained ground in every April and every May since. Not once has it had a down April or May.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
Better Timing. Better Trades.