Three Stocks: Hanging Up On an Earnings Call, This Restructuring Plan is a Short-Term Fix, and Soon to Be Operating 25% Higher

Hanging Up On an Earnings Call

AT&T (T)’s earnings missed the mark this morning with their earnings report.  The company missed earnings expectations and lowered guidance for the year.  The news has T shares trading 4% lower this morning.

We’ve seen some glimmer in the stock’s movement of late including a 6% rally into this morning’s earnings release.  This stock is set up for a “sell the news” pullback.  Watch the $16 level as a break below this price will target $15 quickly.

This Restructuring Plan is a Short-Term Fix

The online garage sale, eBay (EBAY), announced the reduction of another 10% of their workforce as they implement another restructuring plan. Shares are 3% higher on the news since eBay management suggested that the move will allow them to maintain guidance for next quarter.

The technicals don’t favor EBAY as it is trading below its key trendlines. The restructuring announcement buys the stock some time but watch $40 as a critical price. A break below $40 takes the stock to $35.

Simply ask yourself… “when’s the last time I bought something on eBay?”

Soon to Be Operating 25% Higher

Healthcare is hot and Intuitive Surgical (ISGR) is hotter!

Intuitive Surgical beat their earnings mark yesterday as the company boasted another quarter of revenue growth and earnings. The stock has been on a breakneck rally since bottoming in October. It’s now 50% higher over the last three months, and there’s more to come.

From a longer look perspective, ISRG shares just hit new all-time highs, but you’re not hearing about that in the news. That’s one reason I love this rally… its not a crowded trade. Look for ISRG to continue its move higher to a target of $425.


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About the Author

Chris Johnson (“CJ”), a seasoned equity and options analyst with nearly 30 years of experience, is celebrated for his quantitative expertise in quantifying investors’ sentiment to navigate Wall Street with a deeply rooted technical and contrarian trading style.

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