The 2nd quarter earnings reporting period is set to begin in earnest next week. Over the next month, roughly 2,000 public companies will release their Q2 results. While the calendar is relatively empty this week, things start to kick into gear next week as shown in the chart below. Starting with the week of July 23rd, investors will be deluged with dozens (and sometimes hundreds) of reports on a daily basis. The peak week for earnings season comes from July 30th through August 3rd when we hear from 763 companies. The peak day for earnings is Thursday, August 2nd when 268 companies will report.
As we do ahead of each earnings season, below is our updated list of the most volatile stocks on earnings. These are the stocks that have historically experienced the biggest one-day stock price reactions (to the upside or downside) to their quarterly earnings reports. For a stock that reports earnings before the open of trading, we look at its change the next trading day. For a stock that reports earnings before the open, we look at that trading day’s change.
To make the list below, a stock must have at least 4 years worth of quarterly earnings reports (16 reports). It also must be set to report earnings between now and mid-August.
As shown, Groupon (GRPN) is the most volatile stock on earnings with an average absolute one-day price change of +/-16.25%. The Container Store (TCS) ranks as the second most volatile with an average one-day move of +/-15.26%. GRPN is set to report on the morning of August 1st, while TCS is set to report after the close on the same day.
Rounding out the top five are Yelp (YELP), Infinera (INFN), and LendingTree (TREE). Each of these stocks have historically moved at least 14% on their earnings reaction days. Other notables on the list include Netflix (NFLX) — which is by far the largest stock on the list — with an average one-day change of +/-13.37% on earnings, Twitter (TWTR), First Solar (FSLR), Nutrisystem (NTRI), iRobot (IRBT), Pandora (P), and Tableau Software (DATA).
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