If you’re looking for stocks that are setting up in a base ahead of earnings, here’s one that fits the bill: Tenet Healthcare (THC). It’s expected to release its latest numbers around July 21 and is currently about 9% below a 70.85 entry. The entry is based on a third-stage flat base, which means it’s more prone to failure than a first- or second-stage formation.
Keep in mind that buying just before a stock reports is risky, since an EPS or sales miss could send it sharply lower. You can reduce your exposure by waiting to see the actual numbers and the market’s reaction.
EPS growth dropped in the company’s most recent report from 397% to 2%, but sales rose from 2% to 6%.
Analysts expect earnings growth of -15% for the quarter, and -37% growth for the full year. Annual growth estimates were recently revised lower.
Note: Dates for earnings reports are subject to change. Check the company’s website for any updates.
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