Signals Show Investors May Want to Go Long This Week on Xilinx and Marvell
Stocks will likely continue to test their lows in the coming week after touching their lowest levels since 1997 this past week. Investors continued to get hammered with disappointing economic news including a weaker-than-expected gross domestic product and steep drop in existing home sales. Investors also digested Citigroup’s deal, in which the government and private investors will convert preferred stock into common shares.
As for earnings, Xilinx
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PowerRating) is scheduled to report fourth-quarter earnings after the bell Tuesday. Analysts surveyed by Thomson Reuters are expecting earnings per share of $0.15, down 56% from a year ago, on revenue of $365.7 million. Shares have leaned toward a pattern of widening price moves between the after-hours and regular session following 13 of its past 19 earnings-related events. In the near-term, the stock has widened its share move in three of the most recent four quarters.
Xilinx is shaping up to gain a following on either side of the trade after its earnings report. The stock has recorded an earnings-driven upside move in 12 of the last 19 quarters in MidnightTrader.com’s database. It posted a more aggressive upside move the next day in eight of those events. On the downside, Xilinx has recorded seven earnings-driven after-hours declines, and added to its downside move five times the next day.
Marvell Technology Group
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PowerRating) is due with its fourth-quarter results after the bell on Thursday, and analysts polled by Thomson Reuters are expecting the company to report a profit of a penny a share, down 95% from a year ago, on revenue of $510.9 million.
The stock has been trending toward widening its moves recently, doing so in three of the past four quarters. On December 2, the stock jumped 10.6% in after hours action and extended its gains the following regular session, ending up 20.4%.
Cassie Slane is a Senior Editor at www.MidnightTrader.com.
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