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This morning, I promised you an earnings season play that's looming large on my trading screen. You'll recall I mentioned capital is rotating out of financials and into energy.
At the same time, energy stocks will be "headlining" earnings reports next week – the busiest, richest week of the entire season.
Right now, I've got my eye on a company that's been under a lot of pressure, and that only means it's likely to explode much higher as it reports.
Let me show you…
I Love Helmerich & Payne Inc. (NYSE: HP) for This Coming Week
My trading model is practically screaming to recommend this contract petroleum drilling company.
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The company is set to release its quarterly result on Thursday, April 26. Last quarter, Helmerich & Payne blew analysts' consensus for earnings per share and revenue. Unfortunately, the stock was dragged lower by the rest of the market, as its earnings were released literally one day before the January highs.
This time around, HP shares have a short interest ratio of 8.9. With the stock working toward new 52-week highs, it's only a matter of time before a short squeeze starts fueling the stock for another leg in its current bull market rally.
Another strong argument for a bullish development: Helmerich & Payne is the top performer in the energy sector over the last six months after returning 33% since November.
With one of the more attractive technical backdrops among its peers and a high score from my earnings trading model, HP shares are among my bullish picks for next week's earnings parade.
Longer-term investors can grab the shares at their current price to ride them to my target of $80, roughly 11% from their current price.
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About the Author
Chris Johnson is a highly regarded equity and options analyst who has spent much of his nearly 30-year market career designing and interpreting complex models to help investment firms transform millions of data points into impressive gains for clients.
At heart Chris is a quant - like the "rocket scientists" of investing - with a specialty in applying advanced mathematics like stochastic calculus, linear algebra, differential equations, and statistics to Wall Street's data-rich environment.
He began building his proprietary models in 1998, analyzing about 2,000 records per day. Today, that database, which Chris designed and coded from scratch, analyzes a staggering 700,000 records per day. It's the secret behind his track record.
Chris holds degrees in finance, statistics, and accounting. He worked as a licensed broker for 11 years before taking on the role of Director of Quantitative Analysis at a big-name equity and options research firm for eight years. He recently served as Director of Research of a Cleveland-based investment firm responsible for hundreds of millions in AUM. He is also the Founder/CIO of ETF Advisory Research Partners since 2007, noted for its groundbreaking work in Behavioral Valuation systems. Their research is widely read by leaders in the RIA business.
Chris is ranked in the top 99.3% of financial bloggers and top 98.6% of overall experts by TipRanks, the track record registry of financial analysts dating back to January 2009.
He is a frequent commentator on financial markets for CNBC, Fox, Bloomberg TV, and CBS Radio and has been featured in Barron's, USA Today, Newsweek, and The Wall Street Journal, and numerous books.
Today, Chris is the editor of Night Trader and Strikepoint Trader and contributes to Money Morning as the Quant Analysis Specialist.