2 retailers to buy before earnings

Both of these online merchants are seeing booming sales, but buy them before April 22!

By Louis Navellier Apr 15, 2010 11:24PM

retail stocks to buyThe recent economic indicators prove that the American consumer is not dead. Most recently, last week a +9.1% jump in same-store sales for retail stocks fueled optimism on Wall Street.

But what will really knock investors' socks off going forward are strong sales manifesting in the upcoming Q1 earnings reports from major retail stocks.

To get you in to the best stocks ahead of their earnings reports, here are my top two online retail stocks that I think you should purchase before their quarterly reports.

These two stocks are Amazon.com (AMZN) and Priceline.com (PCLN).

Amazon.com  started as Earth's biggest bookstore, but has rapidly become the planet's biggest anything store. Relentless expansion has propelled Amazon.com in countless directions in the quest of bigger sales and profits. The company's main Web site offers anything from books to auto parts to groceries! Shoppers can also download digital content such as games, MP3s and movies to their computers or handheld devices–including Amazon's innovative portable reader, the Kindle. Amazon’s fourth-quarter earnings leaped by over 70% thanks to strong holiday sales, and I expect another great performance when Amazon reports earnings on April 22.
Another online retailer, Priceline.com, allows buyers to name their own price for everything from airline tickets to rental cars to cruises. With its patented business model, the company generates virtually all of its sales from travel-related services. In the case of airline tickets and hotel reservations, Priceline.com keeps the difference between the price paid by the individual and what Priceline.com paid for the ticket or hotel room.
You may not think that travel spending is very high right now, but the bottom line is that value-conscious consumers really love Priceline’s ability to “haggle” on prices. This has allowed the Web site to become an oasis for cash-strapped consumers and generate huge numbers even during the recession. PCLN stock skyrocketed 9% in one day alone after fourth-quarter earnings that showed quarterly profit more than doubled and sales grew 33% over the last year. Priceline stock could perform that well again when it reports earnings on May 10.
So mark your calendar for these two earnings dates -- and if you're going to buy, do so ahead of time to benefit from the earnings surge.

Disclosure: As of this writing, Louis Navellier owned shares of both AMZN and PCLN in personal or client portfolios.


Copyright © 2014 Microsoft. All rights reserved.

Fundamental company data and historical chart data provided by Morningstar Inc. Real-time index quotes and delayed quotes supplied by Morningstar Inc. Quotes delayed by up to 15 minutes, except where indicated otherwise. Fund summary, fund performance and dividend data provided by Morningstar Inc. Analyst recommendations provided by Zacks Investment Research. StockScouter data provided by Verus Analytics. IPO data provided by Hoover's Inc. Index membership data provided by Morningstar Inc.


StockScouter rates stocks from 1 to 10, with 10 being the best, using a system of advanced mathematics to determine a stock's expected risk and return. Ratings are displayed on a bell curve, meaning there will be fewer ratings of 1 and 10 and far more of 4 through 7.

123 rated 1
266 rated 2
485 rated 3
660 rated 4
586 rated 5
652 rated 6
640 rated 7
504 rated 8
289 rated 9
159 rated 10

Top Picks

TAT&T Inc9



Top Stocks provides analysis about the most noteworthy stocks in the market each day, combining some of the best content from around the MSN Money site and the rest of the Web.

Contributors include professional investors and journalists affiliated with MSN Money.

Follow us on Twitter @topstocksmsn.