Five Stocks With Big Earnings Surprises

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Stocks that receive favorable market reaction after reporting big earnings surprises tend to keep going higher in strong bull markets. Some recent examples include MELI, IONS, ZS, and TNDM.

A favorable market reaction is a high-volume range expansion to new 50-day high – a gain of at least 5% on at least 2x the average daily volume.

Here are some stocks that went up immediately after their earnings report after beating estimates by a wide margin that might be setting up for another leg higher:

EXEL broke out from an eight-week base.

GKOS pulled back all the way to its 50-day moving average where it bounced and now it is setting up again for a potential breakout.

DXCM didn’t gap up after their big earnings surprise but managed to consolidate in a tight range near its all-time highs and it is now setting up for a potential breakout.

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