EarningsBeats.com Digest for July 22

Dear EarningsBeats Community Members.

The earnings floodgates will open this week and continue for the next several weeks as thousands of companies report their numbers. Already last week we heard from some large market cap companies with mixed results with the jury still out until we hear from more.

Here's one company set to report tonight that should be solid.

Cadence Design Systems, Inc. (CDNS) has been one of the best performing stocks of 2019. It's been a leader among software stocks, which in turn has been one of the best industry groups the past couple years. I fully expect to see a solid earnings report after the bell today. Of course, the issue will be....has the excellent report already been built into the price? Here's a look at its performance:



Holding into earnings reports is a personal decision. My opinion is to avoid it as the risk is too great. However, if I were to do it, I would only consider it if a company was a leader in a leading industry group. I believe your odds are much higher holding stocks in those situations. It's clear to me that CDNS and its management team is well-respected among Wall Street firms. I'd look for very strong earnings results tonight.

Happy trading,

Tom Bowley
Sr. Technical Analyst
StockCharts.com