(2) Stock’s History Of Earnings Move
It is one of the most important key factors or secrets to determine stock moves after results. Stock’s history of earnings move can be a good indication of the upcoming move.
Although, past performance is not always an indication of future results as they are unrelated. But, it can help investors to some extent to make positions in the right direction.
You can analyze most recent 2-3 quarterly earnings report to determine the most possible move in a given stock. If a stock is trending higher in terms of quarterly basis then it is likely to follow the uptrend.
For example, if a stock shown initial move of 15% three quarter ago, 10% two quarters ago & 5% the past quarter. It means earnings volatility is decreasing with quarterly results. You should not expect a big move in current quarter.
Similarly, if a stock is trending lower in terms of quarterly basis then it is likely to follow the down trend.
(3) Stock’s Move Prior To Result
It is one of the most reasonable & hidden secrets to determine stock moves after results. Stock movements ahead of quarterly earnings report can be a good indicator of expected move.
Aggressive buying or selling in the previous days or weeks to a earnings report can significantly affect potential post-earnings move.
It can be a good indicator of stock price already reflecting the expected results. This can even eliminate the potential move on either side depending on expected results.
Thus, pre-earnings move can be the reason for stock falling after good results & vice versa. Traders & investors are advised to remain cautious while playing with this factor.
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