4 vital trades for Wednesday
Prepare for these earnings releases.
A myriad of companies will be reporting earnings results this week. On Wednesday, several prominent names in the health care sector will be announcing their quarterly results. For traders looking to lay down bets ahead of the action, Stock Traders Daily offers these vital trades for consideration.
After the closing bell on Wednesday, analysts will be expecting the medical device maker Stryker Corporation (SYK) to report a 9.8% improvement in earnings per share on a 3.5% uptick in sales when compared to the prior year's quarter.
This is a great company, but traders going long into the release may be setting themselves up for disappointment. Long-term, Stryker may trend higher, but in the short term I see it cooling off a bit. It has already run up 12.3% since the beginning of the year. It's time to take some off the table.
Prior to the market open on Wednesday, St. Jude Medical (STJ) will unveil the results of its fourth quarter. The consensus on Wall Street is that the company will check in with earnings per share of $0.89 versus $0.86 in last year's quarter. Total revenue is expected to decline by 2.5%. The company has seen a great deal of strength from its atrial fibrillation unit recently, which could help to contribute to an earnings beat of a penny or more. I like the name heading into Wednesday.
One of the nation's largest health insurance providers will also release its fourth quarter results on Wednesday. Before the opening bell, analysts are calling for WellPoint (WLP) to report earnings per share of $0.95 compared to $0.99 in the year-ago quarter. Total revenue is expected to improve by 0.7%.
The company made some notable acquisitions in 2012 including Amerigroup and 1-800 CONTACTS, and its stock price has been picking up steam as of late. If the company can post a beat as it did in the third quarter, the stock should be able to maintain its recent gains and set the table for longer term growth as these acquisitions become fully integrated.
One other name for traders to watch heading into Wednesday is Abbott Laboratories (ABT). Analysts are predicting that the company will report a 3.4% upswing in earnings per share on a 1.9% advance in total revenue when compared to the prior year quarter. The company has surprised to the upside in each of its last four quarters and I see it happening once again. The technicals are great on this stock -- it is heading higher.
Stryker was a damn good company, still is a good company....But traded out to something else, with a little more growth potential and somewhat better dividend...Same sector..
And had owned SYK, for about 10 years...Probably still a fair investment long term..
MORE ON MSN MONEY
Copyright © 2013 Microsoft. All rights reserved.
Quotes are real-time for NASDAQ, NYSE and AMEX. See delay times for other exchanges.
Fundamental company data and historical chart data provided by Thomson Reuters (click for restrictions). Real-time quotes provided by BATS Exchange. Real-time index quotes and delayed quotes supplied by Interactive Data Real-Time Services. 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 SIX Financial Information.
All hail the bull market, which ended the week with a big rally. But it also is starting to look a little like 1987, which suffered an epic blow-out.
VIDEO ON MSN MONEY
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.