Earnings season can be a volatile time for stocks and stock forecasts - especially when you add in economic data about an uncertain US and global economy along with the ongoing European debt crisis. However and during the past week, NextCandle.com issued the following stock forecasts for these stocks that were about to report earnings:
· On Tuesday, The Coca-Cola Company (NYSE:KO) reported earnings before the market opened while the Nextcandle.com stock forecast gave a 65% probability of it making a higher high during the trading day.
· On Tuesday, Goldman Sachs Group (NYSE:GS) reported earnings before the market opened while the Nextcandle.com stock forecast gave it a 59% probability of making a lower low during the trading day.
· On Wednesday, the Bank of New York Mellon (NYSE:BK) reported earnings before the market opened and for the following trading day on Thursday, the Nextcandle.com stock forecast gave it a 62% probability of making a higher high.
And the results:
· The Coca-Cola Company (KO) immediately opened higher at $73.18, had a daily range of $73.18 to $74.48 and closed at $73.95. The Coca-Cola Company (KO) had announced strong results thanks to impressive volume growth in emerging markets and strong pricing in the North American region. Specifically, The Coca-Cola Company (KO) saw 20% volume growth in India, 24% in Thailand, 9% in China and 10% in South Africa. In the North America market, soft drink volume grew 1% while the still beverage volume (e.g. which includes healthier beverages) grew by an impressive 6%
· Goldman Sachs Group (GS) immediately opened higher at $119.37, had a daily range of $116.24 to $119.77 and closed lower at $116.86 - below Monday's close of $117.73. Goldman Sachs Group (GS) beat estimates but its CFO warned that the economic recovery remains fragile and mergers-and-acquisitions activity remains subdued. Specifically, Goldman Sachs Group (GS) noted that demand for bond trading, debt underwriting and derivatives used for hedging had helped to offset declines in other core areas of the bank for the first quarter.
· The Bank of New York Mellon (BK) immediately opened higher at $23.14, had a daily trading range of $22.64 to $23.37 and closed at $22.76 - below the previous day's close of $23.08. The Bank of New York Mellon (BK) had reported that first-quarter earnings fell 1% due to revenue lost from the sale of a unit as well as lower foreign-exchange trading that had offset gains from rising asset levels. Nevertheless, the bank did report decent numbers in a challenging environment. Moreover and when interest rates finally do go up, The Bank of New York Mellon (BK) along with its competitors should see some relief.
We should emphasize that is very hard to have accurate stock forecasts for the trading session immediately after earnings are announced as there are just too many factors at play that can impact both long term investor and short-term trader sentiment. Nevertheless,NextCandle.com's stock forecasts The Coca-Cola Company (KO), Goldman Sachs Group (GS) and The Bank of New York Mellon (BK) were right on the money for the trading session after earnings were announced.
NOTE: THIS PIECE WAS JUST POSTED ON THE NEXTCANDLE.COM BLOG.