EarningsBeats Digest

Published: Fri, 07/09/21

EarningsBeats.com Digest for July 9, 2021

You're Invited!

We hope that you will join us for tomorrow's webinar...

Q2 Earnings Sneak Preview

Saturday, July 10th at 10am eastern

As the initial Q2 quarterly earnings reports are released, EarningsBeats.com's Chief Market Strategist Tom Bowley will be there to separate the good, the bad, and the ugly. In addition, Tom takes a look ahead to upcoming earnings reports to identify stocks that he expects will post blowout numbers.

This event is free to all subscribers of this newsletter. Room instructions will be sent out tomorrow prior to the event. The session will be recorded for those unable to attend live.

See you there!

A Key Breakout Heading Into Earnings

I'm typically a big fan of any company that trades in a range for an extended period of time, then finally makes a breakout. Enter VeriSign, Inc. (VRSN). After topping in July 2019, it took nearly two years to see another new high. While the volume wasn't huge to accompany the price breakout, the accumulation/distribution line (AD line) is setting new highs, which does confirm the price action:

Its industry group, computer services ($DJUSDV) has been climbing steadily on an absolute basis and has been outperforming the S&P 500 since March. Another positive is that VRSN raised its guidance back in April, so Wall Street is expecting a solid report on July 22nd. Perhaps the single biggest obstacle for VRSN is relative resistance that needs to be cleared. It printed a reaction high in May and it's now testing that reaction high again. A breakout on a relative basis would add to the bullishness of the absolute breakout.

Happy trading!

Tom Bowley

Chief Market Strategist

EarningsBeats.com
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