If you're looking for stocks that are setting up in a base ahead of earnings, here's one that fits the bill: Griffon stock. It's expected to report on Jul. 29 and is trading about 15% shy of a 31.12 buy point. The current formation is a first-stage consolidation.
Keep in mind that buying just before a stock reports can be risky, since an EPS or sales miss could send it sharply lower. You can minimize your risk by waiting to see how the company reports and how the market reacts. Using an options strategy during earnings season is another way to put yourself in a position to profit, while minimizing the potential downside.
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The building products firm's earnings grew 191% last quarter, up from -22% in the prior report. Revenue also increased, from 9% to 36%.
Consensus analyst estimates call for EPS growth of 115% for the quarter, and a 109% gain for the full year.
Griffon stock has a 97 Composite Rating and holds the No. 2 rank among its peers in the Building-Construction Products/Miscellaneous industry group. Quanex Building Products is the top-ranked stock within the group.
Note: Dates for earnings reports are subject to change. Check the company's website for any updates.
