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: Insight Enterprises (NSIT). It’s expected to report on May 5 and is currently about 10% shy of a 110.84 buy point. The current formation is a first-stage flat base.
Be aware that jumping into a stock right as it gets ready to report means you likely won’t have enough time to build a profit cushion before the release. That leaves you exposed to a sudden downturn if the company misses analyst estimates or provides weak guidance. You can minimize your exposure by waiting to see the actual numbers and the market’s reaction. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.
Insight Enterprises showed 15% earnings growth in its most recent report, while sales growth came in at 12%.
Analysts expect earnings growth of 23% for the quarter, and a 9% gain for the full year.
Insight Enterprises has a 91 Composite Rating and earns the No. 1 rank among its peers in the Wholesale-Electronics industry group. PC Connection (CNXN) and Wayside Technology (WSTG) 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.
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