As always, there have been hits and misses in the last earnings season. Irrespective of long-term fundamentals, markets tend to react to quarterly results. For medium-term investors, the results provide an opportunity for quick gains by trading in stocks that have delivered positive surprises. There are also cases where the rally is on the back of the revised guidance rather than the actual numbers. This column discusses stocks to buy for 100% upside after strong quarterly results.
I must add here the stocks discussed represent companies that have the potential to create value beyond three to six months. Of course, these are good near-term trading bets as the stock is re-rated. It’s worth noting the stocks discussed have already witnessed a decent rally for the year-to-date. However, considering the fundamentals, the upside momentum is likely to sustain. I would bet on 100% upside for these stocks over a time horizon of one or two quarters.
Let’s discuss the reasons to be bullish.
This post appeared on Dynamic Wealth Report.