Ahead of Earnings - RIG, AGU, AUY, GRMN

August 03, 2010, 08:42 am ET, BY Billy- Contributor| Editor: Thomas H. Kee Jr. (Follow on LinkedIn)

The dog days of August are now upon us and the Q2 earnings season is in full swing. A slew of companies will be reporting their results on Wednesday. Big names in the commodities arena will be reporting on what is certain to be a suspenseful day. Here are four stocks for traders to keep an eye on heading into Wednesday.

The Aftermath

One stock that has taken a severe beating in the wake of the BP oil spill is Transocean (NYSE: RIG). Shares of RIG are down 44.2% year-to-date with the bulk of the decline coming in the weeks following the tragic accident. This stock presently trades at a forward P/E of 5.4.

On Wednesday, shareholders will be anxiously waiting to see what impact the spill has had on earnings and what the damage will be going forward. Analysts are expecting the company to report EPS of $1.71 versus $2.79 in the prior year period. Total revenue is expected to drop 11.3%. A great deal of uncertainty will continue to surround this company and the industry as a whole. Traders looking to take a bet on this stock are advised to review our free RIG trading report for assistance in implementing adequate risk controls when trading.

The crop nutrient company Agrium (NYSE: AGU) will also announce its quarterly results on Wednesday. The consensus is that the company will come in with EPS of $2.76 versus $2.35 in the year-ago quarter. Total sales are projected to rise 2.2%. Shares of Agrium are up 2.4% so far this year. Traders looking to take a long or short position in this stock prior to the release are encouraged to check out our free AGU trading report for additional insight.

A Golden Era

The mining company Yamana Gold (NYSE: AUY) will report its Q2 results at the conclusion of the trading day on Wednesday. The stock price of Yamana has risen more than 150% over the past 5 years although the recent run-up in the price of gold has not given the stock much of a lift. It is flat over the past 52-weeks and is actually down 17.2% year-to-date.

Wall Street is expecting the company to report EPS of $0.15 compared to $0.13 in Q2 of 2009. Total revenue is expected to spike 50.3%. Traders who are optimistic that Yamana will report results that will give the stock a boost can review our free AUY trading report for an in-depth technical analysis.

One other stock for traders to watch going into Wednesday is the GPS product maker Garmin (Nasdaq: GRMN). Analysts are expecting the company to announce EPS of $0.73 versus $0.83 in the year-ago quarter. Total revenue is expected to increase by 1.0%. Traders looking to take a long or short position in this stock prior to the company’s earnings announcement are advised to check out our free GRMN trading report prior to pulling the trigger on any trades.

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