Trade Alert: Earnings, 7/26/2023

Two bullish trades and one bearish one

From the website of one of the companies we’re placing a trade on today.

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 three trades on companies releasing earnings after the close today or before the open Thursday, two bullish:

1. Social data +42, PA options market sentiment neutral, Setup rating of 7, Zacks ESP of 0% (neutral).

2. Social data +36, PA options market sentiment bullish, Setup rating of 5, Zacks ESP of 0.34%.

And one bearish:

1. Social data -41, PA options market sentiment bearish, Setup rating of 6, Zacks ESP -0.59%.

Details below.