The Most And Least Volatile Stocks On Earnings

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Includes: CROX, CTRL, D, DUK, ED, ESRT, FSLR, GRPN, INFN, IRBT, JNJ, MDCA, MO, NFLX, SO, TWTR, WTW, YELP
by: Bespoke Investment Group
Summary

The next earnings reporting period kicks off later this week with the first of the big banks set to report.

Groupon ranks first as the most volatile stock on earnings with an average one-day change of +/-15.4%. Yelp is a close second with an average one-day change of +/-15.2%.

Empire State Realty ranks first on the list of least volatile stocks with an average one-day change of just +/-1.01% on its earnings reaction day.

The next earnings reporting period kicks off later this week with the first of the big banks set to report. Below we show the number of earnings reports on each trading day over the next month. As you can see, things don't really pick up until the last part of April, but from then through early May, we'll see a number of days with 100-250+ reports on the calendar.

As we do prior to the start of each earnings season, below is an update to our list of the most volatile stocks on earnings. These are stocks that typically see the biggest one-day share price moves in response to their earnings reports. In order to make the list, the stock has to have at least 20 quarterly reports (5 years worth) as a public company. It also must be set to report its Q2 numbers sometime in the next month.

Groupon (NASDAQ:GRPN) ranks first as the most volatile stock on earnings with an average one-day change of +/-15.4%. Yelp (NYSE:YELP) is a close second with an average one-day change of +/-15.2%. Infinera (NASDAQ:INFN), Control4 (NASDAQ:CTRL), and MDC Partners (NASDAQ:MDCA) round out the top five.

Netflix (NASDAQ:NFLX) is the most notable name on the list. Even though it's now a $100+ billion company, NFLX has an average one-day change of +/-12.99% on its earnings reaction day. Another well-known name is Twitter (NYSE:TWTR) which sees an average move of +/-12.49% on earnings. Other notables on the list include iRobot (NASDAQ:IRBT), Tableau Software (NYSE:DATA), First Solar (NASDAQ:FSLR), Weight Watchers (NASDAQ:WTW), and Crocs (NASDAQ:CROX).

If you don't like earnings volatility, below is a list of the least volatile stocks on their earnings reaction days. As you can imagine, most of the stocks on this list are from the low-growth but stable Utilities and REIT sectors. Empire State Realty (NYSE:ESRT) ranks first on the list with an average one-day change of just +/-1.01% on its earnings reaction day. Other notables include Consolidated Edison (NYSE:ED), Southern Co (NYSE:SO), Dominion Energy (NYSE:D), Altria (NYSE:MO), Duke Energy (NYSE:DUK), and Johnson & Johnson (NYSE:JNJ). These names are as boring as it gets, but they're certainly not going to cause you many headaches when earnings roll around every quarter either. Instead, they'll likely just pay you a pretty nice dividend.

Editor's Note: The summary bullets for this article were chosen by Seeking Alpha editors.