Investors are rightfully concerned about the current earnings season given how weak the economic data was in the second quarter, especially in Europe. Last year at this time, we were in the midst of one of the worst earnings seasons ever in terms of price reaction on report days after a weak second quarter as well, so that is also cause for concern.
Amid the turmoil over the last five quarters, however, there have been stocks that have been very resilient on their report days. From our Interactive Earnings Report Database (available to Premium Plus members), out of nearly 2,400 stocks that have reported over the last five quarters, only 40 have beaten earnings estimates and also traded higher on every single earnings report since then. These 40 stocks — listed below — performed well on their report days even during Q2 2011 when nearly everything got hit. If they managed to make it through that quarter okay, the thinking is that they should make it through this earnings season as well.
To narrow down the list even more, we went through the price charts of each stock listed and found the ones we feel are set up the best to do well on their upcoming report days. The 10 stocks that made the cut are shown on page two.