Earnings season is in full swing, and this week is seeing a lot of the action. Over 500 companies are reporting in the week, including big names such as ExxonMobil, Amazon, Eli Lilly, and Qualcomm.
When companies report their quarterly earnings, it is usually a big mover for stock prices. Whenever there is a mismatch between expectations and the actual performance, stocks will usually price in the difference immediately.
For ideas on how to create your own watchlist this earnings season, we ran a screen on this week's reporting companies. We screened these stocks for those with the greatest buying attention from the "smart money," i.e., institutional investors and company insiders.
Institutional investors like hedge fund managers and mutual fund managers have a lot of experience and access to sophisticated research, so when they report buying shares of a company, investors and analysts pay attention.
In the same way, when company insiders, such as members of the board and upper management, report that they buy company shares, it is viewed very positively by the market, because who knows their company better than they do?
Business section: Investing ideas
Below is the final list of stocks from our screen on this week's reporting companies. These stocks have seen significant net institutional purchases over the current quarter as a percent of share float, as well as significant net insider purchases over the last six months, also expressed in terms of share float.
Do you think the smart money is calling it right on these names? Will they report positive earnings surprises this week?
List sorted by net insider purchases as a percent of share float. (Click here to access free, interactive tools to analyze these ideas.)
2. Niska Gas Storage Partners
Interactive Chart: Press Play to compare changes in analyst ratings over the last two years for the stocks mentioned above. Analyst ratings sourced from Zacks Investment Research.
Kapitall's Alexander Crawford does not own any of the shares mentioned above. Insider data sourced from Yahoo Finance, institutional data from Fidelity, all other data from Finviz.
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