If you're trying to build your earnings season watch list by looking for stocks setting up in a base ahead of their next earnings report, here's one that fits the bill: AGCO. It's expected to release its latest numbers around May 3 and is trading approximately 10% under a 158.72 entry. The pattern is a second-stage consolidation.
Be aware that buying just before a stock reports can be risky. You don't know how the stock will report and how the market will react, and you don't have enough time to build a profit cushion. You can reduce your risk by waiting to see the actual numbers and the market's reaction. Another way to minimize the risk of a post-earnings sell-off is to use an options strategy.
See How IBD Helps You Make More Money In Stocks
Earnings Growth Up Triple Digits
Top and bottom line growth moved higher in the agriculture company's most recent quarter. Earnings were up triple digits in at least three out of the past four quarters. Fourth quarter 2021 earnings rose 100%, compared to 15% in the prior report. Revenue increased from 9% to 16%.
Consensus analyst estimates call for EPS growth of -3% for the quarter, and 11% growth for the full year. Annual growth estimates were recently revised lower.
AGCO stock has a 96 Composite Rating and holds the No. 1 rank among its peers in the Machinery-Farm industry group. Deere & Company and Lindsay are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
