An Earnings Season Pattern

A bad earnings reports can really tank a stock… [Jeff Clark's Market Minute]( An Earnings Season Pattern By Jeff Clark, editor, Market Minute A bad earnings reports can really tank a stock… And there’s a pattern I’ve identified over the past earnings season. Once the selling pressure was exhausted, the stocks rallied back up towards their declining 50-day moving average lines about one month later. It’s not uncommon for stocks that fall hard following a poor earnings report to decline for several days… get wildly extended to the downside… and then bounce back up towards their 50-day moving average lines. Indeed, there are plenty of recent examples. Take a look… [(Click here to expand image)]( [(Click here to expand image)]( [(Click here to expand image)]( These are just a few of the dozen or so examples of this pattern I’ve identified over the past earnings season. Recommended Link [Don’t Miss the Next AI Payout Opportunity (It’s Coming Soon)]( [image]( Louis Navellier recently revealed a unique way to tap into the AI craze without buying any of the big names like Amazon, Google, or Facebook. It involves a series of consistent, retirement-boosting payouts, and the next one is coming soon. [Click here before you miss it.]( -- Another Victim Walgreens Boots Alliance (WBA) is the latest victim of a huge decline on a bad earnings report. The company missed its revenue estimates. It lowered its forward guidance for earnings and revenues. It announced it was closing a “significant number” of stores. The company gave investors no reason to own the stock. So… they sold. And, they kept selling for several days following the report. WBA traded recently for less than $11 per share – its lowest price since 1998. But here’s how it’ll look if it follows the pattern of companies missing earnings, and jumping back up to its 50-day moving average… [(Click here to expand image)]( There’s no guarantee, of course, that WBA follows this path. But Walgreens is a profitable company. Management estimates it will earn at least $2.80 per share this year. That means, at less than $12 per share, WBA trades for over four times earnings. Free Trading Resources Have you checked out Jeff's free trading resources on his website? It contains a selection of special reports, training videos, and a full trading glossary to help kickstart your trading career – at zero cost to you. Just [click here]( to check it out. The stock trades for just 74% of book value, and 0.31 times sales. So, given the cheap fundamental value of the stock, and given this consistent technical pattern, I like the chances for WBA to bounce back towards $14, or perhaps a bit higher, over the next few weeks. Best regards and good trading, [Signature] Jeff Clark Editor, Market Minute [Jeff Clark's Market Minute]( Jeff Clark Trader 55 NE 5th Avenue, Delray Beach, FL 33483 [www.jeffclarktrader.com]( To ensure our emails continue reaching your inbox, please [add our email address]( to your address book. This editorial email containing advertisements was sent to {EMAIL} because you subscribed to this service. To stop receiving these emails, click [here](. Jeff Clark Trader welcomes your feedback and questions. But please note: The law prohibits us from giving personalized advice. To contact Customer Service, call toll free Domestic/International: 1-800-752-0820, Mon–Fri, 9am–7pm ET, or email us [here](mailto:contactus@jeffclarktrader.com). © 2024 Omnia Research, LLC. All rights reserved. Any reproduction, copying, or redistribution of our content, in whole or in part, is prohibited without written permission from Omnia Research, LLC. [Privacy Policy]( | [Terms of Use](