If you're looking for stocks that are setting up in a base ahead of earnings, here's one that fits the bill: IBD 50 member Molina Healthcare stock. It's expected to release its latest numbers around Oct. 26 and is currently approximately 2% shy of a 361.35 entry. The current formation is a first-stage flat base.
Understand that buying close to when a stock reports can be risky. You don't know how the stock will report and how the market will react, and you don't have enough time to build a profit cushion. You can reduce your exposure by waiting to see the actual numbers and the market's reaction.
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While revenue growth fell last quarter from 19% to 18%, the bottom line grew 34%, up from 10% in the previous report.
Consensus analyst estimates call for EPS growth of 48% for the quarter, and a 31% gain for the full year.
Molina Healthcare stock has a 97 Composite Rating and holds the No. 1 rank among its peers in the Medical-Managed Care industry group. Humana and Cigna are also among the group's highest-rated stocks.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
