Earnings Edge: Oracle, JinkoSolar May Swing Big in Quiet Week
We are in the quiet period of earnings season. But don’t worry, there’s still plenty of earnings action for us to look at.
This week, we have two companies that are expected to make big moves when they announce their results.
First, we’ll break down the only stock in the S&P 500 Index that’s set to report earnings this week, software giant Oracle Corp. (NYSE: ORCL).
The other stock we’ll cover in today’s Earnings Edge is JinkoSolar Holding Co. (NYSE: JKS), a Chinese renewable energy company.
So two stocks on the opposite end of the spectrum in size and operations (even location).
It’s the kind of stuff I love about the markets. There are opportunities all over the place.
And I’ll show you what you can expect from these two this week.
Let’s dive in…
Earnings Edge Stock No. 1: Oracle Corp. (NYSE: ORCL)
Earnings Announcement Date: Monday, after the close.
Expectations: Earnings at $0.97 per share. Revenue at $9.7 billion.
Average Analyst Rating: Hold.
All eyes are on Oracle’s cloud growth this quarter.
It got a boost during the pandemic, but investors want to see that momentum carried over. It shows in the stock price.
ORCL shares are up 15% since its last earnings announcement, but the price has gone nowhere for the past couple of months.
ORCL Is Trading Sideways
The price for the stock is in a clear uptrend, but that sideways price movement since July 8 shows us that investors are nervous at this point.
They are waiting for earnings to make the next big move, and that’s exactly what we are going to see this afternoon.
Traders are looking for a 2.7% move this week on earnings.
It could move more than that for sure, but you want to watch that key support in green above. If it can hold this week, shares have more room to climb. But if it breaks, expect the stock to make a choppy move lower.
Stock No. 2: JinkoSolar Holdings Co. (NYSE: JKS)
Earnings Announcement Date: Wednesday, before the open.
Expectations: Earnings at a loss of $0.16 per share. Revenue at $1.1 billion.
Average Analyst Rating: Hold.
While China has cracked down on some public companies, it seems to be focused on tech stocks and the wealth they created. So far, JinkoSolar doesn’t show much of an impact.
Still, this is one volatile stock.
Going back to 2020, shares are trading in a massive wedge pattern that is nowhere near a breakout. And that means we can expect a big move this week.
JKS Is the Opposite of Steady
With the stock trading well in-between these two trend lines, there’s plenty of room for the stock to pop or drop double-digits this week.
Options traders are looking for a big move as well. Most of the companies we look at only price in moves around 2% on earnings. JinkoSolar has an expected move of more than 5%.
The one thing we can count on from this stock is more volatility. Big sharp swings are the norm. And that shouldn’t change this week.
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Chad Shoop is a Chartered Market Technician and options expert for Banyan Hill Publishing. He is the editor of three leading newsletters: Quick Hit Profits, Automatic Profits Alert and Pure Income. His content is frequently published on Investopedia and Seeking Alpha. Check out his YouTube Channel to see his latest market insights.
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Investing has consumed my life since college. While double majoring in finance and economics at the University of North Carolina at Greensboro, I founded the university’s economics club, joined the finance club and participated in the Chartered Financial Analyst research competition to represent our school.