Trade Alert: Earnings, 7/25/2023

One bullish and one bearish trade.

A screen capture from the company we’re betting against today, advertising its diverse medical professionals.

Recall that we’re looking at four metrics when placing these earnings trades:

1. LikeFolio’s earnings score based on social data. The higher the number, the more bullish, the lower (more negative) the number, the more bearish.

2. Portfolio Armor’s gauge of options market sentiment.

3. Chartmill’s Setup rating. On a scale of 1-10, this is a measure of technical consolidation. For bullish trades, I want a high setup rating; for bearish trades, a lower one.

4. Zacks Earnings ESP (Expected Surprise Prediction). This is a ratio of the most accurate analyst’s earnings estimate versus the consensus estimate.

I’m looking for 1 or 2 of the other signals to agree with the social data, but I’m also using my judgment based on past performance of these signals. We’ve got two trades on companies releasing earnings after the close today or before the open Wednesday, one bullish:

1. Social data +43, PA options market sentiment bullish, Setup rating of 5, Zacks ESP of 41.67%.

And one bearish:

1. Social data -36, PA options market sentiment neutral, Setup rating of 4, Zacks ESP -8.87%.

Details below.