Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.
*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.
Heads up, Fools. If you own shares of Redbox DVD parent Outerwall (OUTR +0.00%), action-camera maker GoPro (GPRO 0.06%), or beauty-product licensor Coty (COTY 0.01%), chances are that you're going to experience a lot of volatility on Wall Street this week.
That's because all three of these stocks will be reporting quarterly earnings, and all three are heavily shorted. When these two forces combine, volatility is almost always the result. If you don't believe me, check out the stocks I highlighted earlier in the month.
But instead of trying to (small "f") foolishly profit from these short-term movements, I think shareholders should prepare for this volatility by checking out the following slideshow. It'll help you decipher between what's short-term noise, and what long-term signals are worth heeding.
Photos: GoPro, Outerwall, Coty