Earnings season is in full swing. In my backtesting, companies that report earnings above analysts’ consensus estimates tend to outperform the market. Here are three popular technology stocks that have reported blowout earnings so far this quarter. Only the data that is most important and has been historically reliable in the past is listed below.
SanDisk
SanDisk (SNDK) is the premier manufacturer of NAND or non-volatile memory that is so popular in today’s mobile devices such as Apple AAPL +0.98%(AAPL) iPhones and iPads. SanDisk reported EPS of $1.59 compared to consensus estimate of $1.32; revenue came at $1.63 billion compared to consensus estimate of $1.57 billion.
The company projects Q4 revenue of $1.65 – $1.73 billion vs. consensus estimate of $1.67 billion. The company also projects FY 13 revenue above $6.05 billion vs. consensus estimate of $6.05 billion.
From a technical perspective, the stock has broken out of the resistance zone of $62.00 – $63.75. Now the foregoing zone will act as a support zone on a pullback. My backtesting shows that a consistently profitable methodology is to start accumulating companies reporting blowout earnings on a pullback to the support zone.
Further, it is usually profitable to add to the position on a pullback to a second support zone. The second support zone is $57 – $58.
Google (GOOG) is the premier search engine and has its hands in many ventures such as Android for mobile devices and YouTube….Read more at Forbes
