Get ready, Fools. If you own shares of Mattel (NASDAQ:MAT), Advanced Micro Devices (NASDAQ:AMD), or Winnebago Industries (NYSE:WGO), your week could end with your stomach feeling like you just took a ride on the roller coaster above.
That's because all three of these stocks share two things in common: they are all heavily shorted, or have lots of investors betting against their short-term success, and they are all reporting earnings this week. When these two forces combine, volatility is almost always the result. For proof, look at the stocks I singled out last week, which moved an average of 13% following their respective releases.
But don't be (small f) fooled: I don't think you should try and profit from these swings. There's no way to tell whether they will go up or down. Instead, I think long term investors should check out the slideshow below to prepare for the week to come, and investigate what's really worth paying attention to.
Brian Stoffel has no position in any stocks mentioned. The Motley Fool owns shares of and recommends Hasbro. The Motley Fool recommends Nvidia and Winnebago Industries. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.