EarningsBeats.com Digest for April 14, 2021
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Is This Software Stock The Next To Make A Big Pre-Earnings Move?
On March 26th, I wrote a ChartWatchers article that detailed the historical pre-earnings moves made by Shopify, Inc. (SHOP), a leading software stock. I pointed out that SHOP has a history of soaring into its earnings reports, gaining an average of 45% during the 4-5 weeks leading up to its earnings reports - over the past 5 quarters. SHOP was trading at 1065.21 at the time. A little over two weeks later and SHOP now trades at 1241.54.
That's a 17% move to the upside in a very short period of time. I then provided Tesla (TSLA) in the very next EB Digest as a stock that performs EVEN BETTER leading up to earnings reports. It had closed at 611.29 on March 29th, and it now trades at 762.32 just two weeks later. That's roughly a 25% advance - again, over a very short period of time. Would you like another stock that could be poised to do the same? Check out this chart:
Software stocks ($DJUSSW) have broken to a fresh all-time high and MGNI could be poised to resume its prior leadership role amongst its software industry peers. Over the past 5 quarters, MGNI has risen approximately 67%, 80%, 49%, 85%, and 55% over the 3-6 weeks preceding its quarterly earnings reports. MGNI reports its next quarterly results on May 4th. Did Tuesday's 5.42% advance signal that the next pre-earnings advance is underway? If
so, we'll need to clear a few key resistance levels, starting with the 20-day EMA, currently at 42.31. Tuesday's close was 41.98, up 5.42% for the day. Increasing volume in the days ahead to accompany key breakouts would be a very bullish short-term signal.
Happy trading!
Tom Bowley
Chief Market Strategist
EarningsBeats.com
Better Timing. Better Trades.
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