Looking for action? At the start of each earnings season, we publish our list of the most volatile stocks on earnings. Our Earnings Explorer tool contains a huge database that has every single quarterly earnings report for nearly all US-listed stocks going back to 2001. One part of the database tracks the one-day price reaction that stocks experience following their earnings reports, so users are able to easily track how individual stocks typically react to earnings.
In the table below, we show the stocks expected to report within the next month that have historically been the most volatile in reaction to earnings. To make the list, the company had to have at least 20 quarterly reports (5 years) and also have a current share price of $5 or more.
At the top of the list is Telecom equipment maker Infinera (INFN), which is scheduled to report on October 28th after the close. INFN just barely makes the cut because it trades at $5.20/share, but it has historically averaged a one-day absolute change of 15.16% on its historical earnings reaction days. You can expect a big move when it reports at the end of this month. Consumer review website YELP ranks as the second most volatile stock on earnings with an average one-day move of +/-14.85%. Enphase Energy (ENPH), LendingTree (TREE), and Applied Opto (AAOI) round out the top five with average one-day moves of more than +/-13% on their earnings reaction days. Other notables towards the top of the list include Wayfair (W), Netflix (NFLX), and Twitter (TWTR), which all typically move either up or down more than 12% on earnings.
Of the stocks on the list, Enphase (ENPH) is up by far the most in 2019 with a huge gain of 424%. Other stocks like Stamps.com (STMP), ANGI Homeservices (ANGI), and Green Dot (GDOT) are down more than 50% YTD. Twitter (TWTR), Blucora (BCOR), and Benefitfocus (BNFT) have the highest earnings beat rates at more than 90%. While it has a high beat rate, BNFT has been on a wild ride over the past two years, rallying from $24 up to $60 in 2018 before falling all the way back down to $24 as of today. You can bet a big move is in store when it reports on the 31st. If you haven’t tried it yet, we urge you to give our Earnings Explorer a test ride this earnings season! CLICK HERE to start a two-week free trial to Bespoke Institutional to gain access now!
If you’re just interested in large-cap names, below is a list of the most volatile S&P 500 stocks on earnings. These are stocks set to report over the next month, and as shown, Netflix (NFLX) is at the top of the list with an average one-day move of +/-12.78% on earnings. Twitter (TWTR), Align Tech (ALGN), TripAdvisor (TRIP), and Akamai (AKAM) rank 2nd through 5th in that order, while other notables include Amazon (AMZN), Advanced Micro (AMD), Chipotle (CMG), Facebook (FB), Electronic Arts (EA), and Wynn Resorts (WYNN).
If you own or have interest in owning any of these names, buckle up because they’re likely to experience a big move when they report at some point in the next few weeks!